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 13, 2020

 

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.

 

EXHIBIT INDEX

 

 

 

__________________________________________________________________________________

 

SIGNATURES

 

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

 

 

	BARCLAYS PLC
	(Registrant)

 

 

 

Date: February 13, 2020

 

 

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

 

 

 

Barclays PLC

 

Results Announcement

 

31 December 2019

 

Table of Contents

 

Results Announcement		Page
Notes		1
Performance Highlights		2-3
Group Chief Executive Officer's Review		4
Group Finance Director's Review		5-6
Results by Business
●	Barclays UK	7-9
●	Barclays International	10-13
●	Head Office	14
Quarterly Results Summary		15
Quarterly Results by Business		16-21
Performance Management
●	Margins and Balances	22
●	Remuneration	23-24
Risk Management
●	Risk Management and Principal Risks	25
●	Credit Risk	26-36
●	Market Risk	37
●	Treasury and Capital Risk	38-47
Statement of Directors' Responsibilities		48
Condensed Consolidated Financial Statements		49-53
Financial Statement Notes		54-61
Appendix: Non-IFRS Performance Measures		62-71
Shareholder Information		72

 

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 2019 to the corresponding 12 months of 2018 and balance sheet analysis as at 31 December 2019 with comparatives relating to 31 December 2018. 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/investor-relations/reports-and-events/latest-financial-results. 

 

The information in this announcement, which was approved by the Board of Directors on 12 February 2020, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2019, which contain 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 as a Form 6-K to 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 62 to 71 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. Forward-looking statements can be made in writing but also may be made verbally by members of the management of the Group (including, without limitation, during management presentations to financial analysts) 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 growth, assets, impairment charges, provisions, business strategy, 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, estimates of capital expenditures, plans and objectives for future operations, projected employee numbers, IFRS 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. The forward-looking statements speak only as at the date on which they are made and such statements may be affected by changes in legislation, the development of standards and interpretations under IFRS, including 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 applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions; the effects of any 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 entity within the Group or any securities issued by such entities; the potential for one or more countries exiting the Eurozone; instability as a result of the exit by the UK from the European Union and the disruption that may subsequently result in the UK and globally; 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 financial position, future results, dividend payments, capital, leverage or other regulatory ratios or other financial and non-financial metrics or performance measures 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 our filings with the SEC (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2019), which are available on the SEC's website at www.sec.gov.

 

Subject to our 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 improved returns and increased distributions to shareholders, with Group earnings per share of 24.4p and a return on tangible equity of 9.0% (both excluding litigation and conduct), and a total dividend of 9.0p

 

●	Group return on tangible equity (RoTE) improved year-on-year to 9.0%1 (2018: 8.5%), in line with the 2019 target. This represents the third consecutive year of improved year-on-year RoTE performance for the Group2
●	The Group continues to target >10% RoTE1. However, given global macroeconomic uncertainty and the current low interest rate environment, it has become more challenging to achieve this in 2020. Notwithstanding these headwinds, the Group believes it can achieve a meaningful improvement in returns in 2020
●	Group statutory profit before tax was £4.4bn (2018: £3.5bn) and, excluding litigation and conduct, was £6.2bn (2018: £5.7bn). Statutory earnings per share (EPS) were 14.3p (2018: 9.4p) and, excluding litigation and conduct were 24.4p (2018: 21.9p)
●	Common equity tier 1 (CET1) ratio was 13.8%, with the Group target remaining c.13.5%
●	Delivering attractive capital returns to shareholders remains a key priority, whilst also continuing to improve RoTE on a sustainable basis and investing in business growth

 

Returns1   Group RoTE target of >10% over time	●	Group profit before tax of £6.2bn (2018: £5.7bn) and EPS of 24.4p (2018: 21.9p)
		-	Barclays UK RoTE of 17.5% (2018: 16.7%)
		-	Barclays International RoTE of 9.3% (2018: 8.7%)
			-	Corporate and Investment Bank (CIB) RoTE of 8.0% (2018: 7.1%)
			-	Consumer, Cards and Payments (CC&P) RoTE of 15.9% (2018: 17.3%)
Cost efficiency1   Cost: income ratio of <60% over time	●	Group operating expenses were in line with the 2019 guidance of less than £13.6bn1. All operating businesses generated positive cost: income jaws and the Group delivered positive jaws for the third consecutive year1
	●	The 2019 cost: income ratio was 63%1 (2018: 66%), reflecting disciplined cost management as cost efficiencies were partially offset by continued investment
	●	Cost control remains a priority and management continues to target a cost: income ratio of <60% over time
Capital and dividends   CET1 ratio target of c.13.5%3	●	Group CET1 ratio of 13.8% (December 2018: 13.2%)
	●	Total dividend for 2019 of 9.0p, up from 6.5p in 2018
	●	The Group capital returns policy remains unchanged, incorporating progressive ordinary dividends, supplemented with share buybacks as and when appropriate

 

●	Group profit before tax was £4.4bn (2018: £3.5bn), including an additional provision for Payment Protection Insurance (PPI) of £1,400m (2018: £400m). Profit before tax, excluding litigation and conduct, was £6.2bn (2018: £5.7bn). Income increased 2%, while operating expenses decreased 2%, resulting in an improved cost: income ratio of 63% (2018: 66%), with both Barclays UK and Barclays International delivering positive cost: income jaws1. Credit impairment charges increased to £1.9bn (2018: £1.5bn). The 2019 charge includes the impact of macroeconomic scenario updates and an overall reduction in unsecured gross exposures. Prior year comparatives included the impact of favourable macroeconomic scenario updates and a £150m charge regarding the anticipated economic uncertainty in the UK
●	Barclays UK profit before tax was £1.0bn (2018: £2.0bn) and, excluding litigation and conduct, was £2.6bn (2018: £2.4bn). Income was stable, as ongoing margin pressure was offset by continued growth in mortgages and deposits. Operating expenses decreased 2% as cost efficiencies were partially offset by planned investment and inflation, driving an improved cost: income ratio of 55% (2018: 56%). Credit metrics improved marginally in UK cards
●	Barclays International profit before tax was £4.1bn (2018: £3.8bn) and, excluding litigation and conduct, was £4.2bn (2018: £3.9bn), driven by income growth of 5% in CIB and 4% in CC&P. Operating expenses decreased 2% due to cost efficiencies partially offset by continued investment. Credit metrics were stable in US cards
●	Tangible net asset value (TNAV) per share was 262p (December 2018: 262p) as 14.3p of statutory EPS was offset by dividend payments totalling 7p per share and net negative reserve movements. Excluding litigation and conduct of 10p per share, EPS was 24.4p

 

1	Excluding litigation and conduct.
2	Excluding litigation and conduct and material items in 2017.
3	Group RoTE target based on an assumed CET1 ratio at the target of c.13.5%.

 

Barclays Group results
for the year ended	31.12.19	31.12.18
	£m	£m	% Change
Total income	21,632	21,136	2
Credit impairment charges	(1,912)	(1,468)	(30)
Net operating income	19,720	19,668	-
Operating costs	(13,359)	(13,627)	2
UK bank levy	(226)	(269)	16
Operating expenses	(13,585)	(13,896)	2
Guaranteed Minimum Pensions (GMP) charge	-	(140)
Litigation and conduct	(1,849)	(2,207)	16
Total operating expenses	(15,434)	(16,243)	5
Other net income	71	69	3
Profit before tax	4,357	3,494	25
Tax charge1	(1,003)	(911)	(10)
Profit after tax	3,354	2,583	30
Non-controlling interests	(80)	(234)	66
Other equity instrument holders	(813)	(752)	(8)
Attributable profit	2,461	1,597	54
Performance measures
Return on average tangible shareholders' equity	5.3%	3.6%
Average tangible shareholders' equity (£bn)	46.6	44.1
Cost: income ratio	71%	77%
Loan loss rate (bps)	55	44
Basic earnings per share	14.3p	9.4p
Dividend per share	9.0p	6.5p
Performance measures excluding litigation and conduct2
Profit before tax	6,206	5,701	9
Attributable profit	4,194	3,733	12
Return on average tangible shareholders' equity	9.0%	8.5%
Cost: income ratio	63%	66%
Basic earnings per share	24.4p	21.9p
Balance sheet and capital management3	£bn	£bn
Tangible net asset value per share	262p	262p
Common equity tier 1 ratio	13.8%	13.2%
Common equity tier 1 capital	40.8	41.1
Risk weighted assets	295.1	311.9
Average UK leverage ratio	4.5%	4.5%
UK leverage ratio	5.1%	5.1%
Funding and liquidity
Group liquidity pool (£bn)	211	227
Liquidity coverage ratio	160%	169%
Loan: deposit ratio	82%	83%

 

1	From 2019, due to an IAS 12 update, the tax relief on payments in relation to Additional Tier 1 (AT1) instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated, reducing the tax charge for FY18 by £211m. This change does not impact EPS or return on average tangible shareholders' equity.
2	Refer to pages 62 to 71 for further information and calculations of performance measures excluding litigation and conduct.
3	Refer to pages 41 to 46 for further information on how capital, Risk Weighted Assets (RWAs) and leverage are calculated.

 

Group Chief Executive Officer's Review

 

"2019 was another year of progress for Barclays, continuing the positive momentum across our business and allowing us to increase returns to shareholders.

 

Excluding litigation and conduct, profit before tax was up 9% to £6.2bn, and Group return on tangible equity improved to 9.0% for the year, in line with our target for 2019.

 

Disciplined cost management and income growth resulted in a cost: income ratio of 63%, excluding litigation and conduct, and we saw positive jaws across all operating businesses, allowing us to continue investment in our service to customers and clients, including future growth opportunities, as well as improving profitability.

 

Barclays is a British universal bank, with a well-balanced mix of consumer and wholesale businesses, across geographies and currencies: this helps us deliver year-on-year improvements in profitability during a period of macroeconomic uncertainty.

 

We continue to believe that it is appropriate to target a return greater than 10%, and we are managing our business to achieve that. However, given the low interest rate environment, it has become more challenging to achieve that target in 2020. Nonetheless, Barclays is confident of further improving returns meaningfully this year.

 

Looking ahead, we will extend our customer reach by using our current strengths - our brand, our existing digital proposition, our universal banking model, and leading market positions. We will accelerate our digital journey, and continue to play a leading role in capturing innovation and bringing it to life, at scale, for millions of customers and clients. In this way, we will invest for growth in areas that are less capital intensive, further diversifying the Group without limiting our commitment to the businesses we already have.

 

Through continued cost discipline, we will also create the capacity to make targeted investments across our business.

 

With continued strong capital generation and a CET1 ratio of 13.8%, we are pleased to be able to deliver improved returns to shareholders, and have declared a total dividend of 9 pence per share - up from 6.5p in 2018, and three times that of 2017.

 

We expect future earnings to drive increased returns to shareholders, as we anticipate a significant reduction in charges related to litigation and conduct from this year onwards. We intend to pay a progressive ordinary dividend supplemented with additional cash returns to shareholders, including share buybacks, as and when appropriate.

 

I look forward to delivering for all of our stakeholders in 2020 and beyond."

 

James E Staley, Group Chief Executive Officer

 

Group Finance Director's Review

 

Group performance

 

●	RoTE, excluding litigation and conduct, increased to 9.0% (2018: 8.5%), in line with the 2019 target. EPS, excluding litigation and conduct, increased to 24.4p (2018: 21.9p). Statutory EPS was 14.3p (2018: 9.4p)
●	Profit before tax was £4,357m (2018: £3,494m), including an additional provision for PPI of £1,400m (2018: £400m). Excluding litigation and conduct, profit before tax was £6,206m (2018: £5,701m), with higher income and lower operating expenses partially offset by increased year-on-year credit impairment charges. The 4% appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and operating expenses
●	Total income increased 2% to £21,632m. Barclays UK income was stable, as ongoing margin pressure and continued reduced risk appetite in UK cards were offset by mortgage and deposit balance growth. Barclays International income increased 5%, with CIB income up 5% and CC&P income up 4%. Within CIB, Markets income increased due to continued market share gains1, while Banking fees income was stable and a reduction in Corporate lending income was partially offset by an increase in Transaction banking income. Higher CC&P income reflected growth in US co-branded cards and payments partnerships
●	Credit impairment charges increased to £1,912m (2018: £1,468m). The 2019 charge includes the impact of macroeconomic scenario updates and an overall reduction in unsecured gross exposures. Prior year comparatives included the impact of favourable macroeconomic scenario updates and a £150m charge regarding the anticipated economic uncertainty in the UK
●	Operating expenses decreased to £13,585m (2018: £13,896m) in line with 2019 guidance, as cost efficiencies were partially offset by continued investment. Barclays UK and Barclays International each generated positive cost: income jaws, resulting in the Group cost: income ratio, excluding litigation and conduct, reducing to 63% (2018: 66%)
●	Total operating expenses of £15,434m (2018: £16,243m) included litigation and conduct charges of £1,849m (2018: £2,207m)
●	The effective tax rate was 23.0% (2018: 26.1%). Excluding litigation and conduct, the effective tax rate was 18.0% (2018: 17.2%). The Group's effective tax rate for future periods is expected to remain around 20%, excluding litigation and conduct
●	Attributable profit was £2,461m (2018: £1,597m). Excluding litigation and conduct, attributable profit was £4,194m (2018: £3,733m), generating an RoTE of 9.0% (2018: 8.5%) and EPS of 24.4p (2018: 21.9p)

 

Group capital and leverage

 

●	The CET1 ratio increased to 13.8% (December 2018: 13.2%)
	-	CET1 capital decreased by £0.3bn to £40.8bn. This was driven by underlying profit generation of £5.0bn offset by dividends paid and foreseen of £2.4bn, the additional provision for PPI of £1.4bn, pension deficit reduction contribution payments of £0.5bn, a decrease in the currency translation reserve of £0.5bn, mainly driven by the depreciation of period end USD against GBP, and a loss on the redemption of Additional Tier 1 (AT1) securities of £0.4bn
	-	Risk Weighted Assets (RWAs) decreased by £16.8bn to £295.1bn primarily driven by the reduction in the Group's operational risk RWAs, as well as the depreciation of period end USD against GBP
●	The average UK leverage ratio remained stable at 4.5% (December 2018: 4.5%) primarily driven by a net increase in AT1 capital, offset by a modest increase in leverage exposure to £1,143bn (December 2018: £1,110bn). The UK leverage ratio also remained stable at 5.1% (December 2018: 5.1%)

 

1	Data Source: Coalition, FY19 Preliminary Competitor Analysis. Market share represents Barclays share of the total industry Revenue Pool. Analysis is based on Barclays internal business structure and internal revenues.

 

Group funding and liquidity

 

●

The liquidity pool, at £211bn (December 2018: £227bn), reflects the Group's prudent approach to liquidity management. The liquidity coverage ratio (LCR) remained well above the 100% regulatory requirement at 160% (December 2018: 169%), equivalent to a surplus of £78bn (December 2018: £90bn). The liquidity pool, LCR and surplus have been managed down through the course of the year, supporting increased business funding requirements while maintaining a prudent liquidity position

●

Wholesale funding outstanding, excluding repurchase agreements, was £147.1bn (December 2018: £154.0bn). The Group issued £8.6bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company). The Group is well advanced in its MREL issuance plans, with a Barclays PLC MREL ratio of 31.2% as at 31 December 2019 relative to an estimated requirement (including requisite buffers) of 31.3% by 1 January 2022. This requirement increased from 29.9% as at 30 June 2019, due to the revision of the Group's Pillar 2A requirement, following the removal of the Group's operational risk RWAs floor

 

Other matters

 

●

As at 31 December 2019, the Group held a provision of £1.2bn against the cost of PPI redress and associated processing costs. Q319 saw an exceptional level of claims and information requests received in advance of the complaint deadline of 29 August 2019. Of the greater than 2 million items outstanding at Q319, materially all have now been processed into Barclays' systems and 52% of the items processed have been resolved. Based on resolution of complaints during Q419, the observed outcomes support the level of provision. Further information can be found on pages 57 to 58

●

The latest triennial actuarial valuation of the UK Retirement Fund (UKRF), with an effective date of 30 September 2019, has been completed and showed a funding deficit of £2.3bn compared to a £7.9bn funding deficit in the previous triennial valuation (effective date 30 September 2016). Barclays and the UKRF Trustee have agreed a revised recovery plan including lower deficit reduction contributions. Further information can be found on page 59

 

Dividends / capital returns

 

●	A half year dividend of 3.0p was paid on 23 September 2019. Barclays declares a full year dividend of 6.0p per share, resulting in a total dividend of 9.0p per share for 2019 (up from 6.5p in 2018)
●	The Group's existing capital returns policy as set out in the FY18 results announcement remains unchanged:
	"Barclays understands the importance of delivering attractive cash returns to 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 a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the Group. It is also the Board's intention to supplement the ordinary dividends with additional cash returns, including share buybacks, to shareholders as and when appropriate"

 

Outlook and guidance

 

●

The Group continues to target >10% RoTE1. However, given global macroeconomic uncertainty and the current low interest rate environment, it has become more challenging to achieve this in 2020. Notwithstanding these headwinds, the Group believes it can achieve a meaningful improvement in returns in 2020

 

Tushar Morzaria, Group Finance Director

 

1	Excluding litigation and conduct.

 

Results by Business

 

Barclays UK	Year ended	Year ended
	31.12.19	31.12.18
Income statement information	£m	£m	% Change
Net interest income	5,888	6,028	(2)
Net fee, commission and other income	1,465	1,355	8
Total income	7,353	7,383	-
Credit impairment charges	(712)	(826)	14
Net operating income	6,641	6,557	1
Operating costs	(3,996)	(4,075)	2
UK bank levy	(41)	(46)	11
Operating expenses	(4,037)	(4,121)	2
Litigation and conduct	(1,582)	(483)
Total operating expenses	(5,619)	(4,604)	(22)
Other net income	-	3
Profit before tax	1,022	1,956	(48)
Attributable profit1	281	1,198	(77)
Balance sheet information	£bn	£bn
Loans and advances to customers at amortised cost	193.7	187.6
Total assets	257.8	249.7
Customer deposits at amortised cost	205.5	197.3
Loan: deposit ratio	96%	96%
Risk weighted assets	74.9	75.2
Period end allocated tangible equity	10.3	10.2
Key facts
Average loan to value of mortgage portfolio2	51%	49%
Average loan to value of new mortgage lending2	68%	65%
Number of branches	963	1,058
Mobile banking active customers	8.4m	7.3m
30 day arrears rate - Barclaycard Consumer UK	1.7%	1.8%
Performance measures
Return on average allocated tangible equity	2.7%	11.9%
Average allocated tangible equity (£bn)	10.3	10.0
Cost: income ratio	76%	62%
Loan loss rate (bps)	36	43
Net interest margin	3.09%	3.23%
Performance measures excluding litigation and conduct3	£m	£m
Profit before tax	2,604	2,439	7
Attributable profit	1,813	1,670	9
Return on average allocated tangible equity	17.5%	16.7%
Cost: income ratio	55%	56%

 

1	From 2019, due to an IAS 12 update, the tax relief on payments in relation to AT1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated. This change does not impact EPS or return on average tangible shareholders' equity.
2	Average loan to value of mortgages is balance weighted and reflects both residential and buy-to-let (BTL) mortgage portfolios within the Home Loans portfolio. The prior period has been updated to align to this basis of preparation.
3	Refer to pages 62 to 71 for further information and calculations of performance measures excluding litigation and conduct.

 

Analysis of Barclays UK	Year ended	Year ended
	31.12.19	31.12.18
Analysis of total income	£m	£m	% Change
Personal Banking	4,009	4,006	-
Barclaycard Consumer UK	1,992	2,104	(5)
Business Banking	1,352	1,273	6
Total income	7,353	7,383	-
Analysis of credit impairment charges
Personal Banking	(195)	(173)	(13)
Barclaycard Consumer UK	(472)	(590)	20
Business Banking	(45)	(63)	29
Total credit impairment charges	(712)	(826)	14
Analysis of loans and advances to customers at amortised cost	£bn	£bn
Personal Banking	151.9	146.0
Barclaycard Consumer UK	14.7	15.3
Business Banking	27.1	26.3
Total loans and advances to customers at amortised cost	193.7	187.6
Analysis of customer deposits at amortised cost
Personal Banking	159.2	154.0
Barclaycard Consumer UK	-	-
Business Banking	46.3	43.3
Total customer deposits at amortised cost	205.5	197.3

 

The income environment in 2019 was challenging for Barclays UK and the additional PPI provision of £1.4bn (2018: £0.4bn) impacted full year profit before tax. Nevertheless, the business continued to deliver strong growth in balances, increasing mortgage lending by £6.4bn and growing deposits by £8.2bn. Barclays UK also delivered positive cost: income jaws, leading to an improvement in the cost: income ratio (excluding litigation and conduct) as cost efficiencies outweighed continued investment.

 

2019 compared to 2018

 

Income statement

 

●	Profit before tax, excluding litigation and conduct, increased 7% to £2,604m and RoTE increased to 17.5% (2018: 16.7%) reflecting the resilience of the business in a challenging income environment. Including litigation and conduct charges of £1,582m (2018: £483m), profit before tax was £1,022m (2018: £1,956m)
●	Total income was stable at £7,353m (2018: £7,383m). A 2% reduction in net interest income to £5,888m (resulting in a lower net interest margin (NIM) of 3.09% (2018: 3.23%)) reflected higher refinancing activity by mortgage customers, lower interest earning lending (IEL) balances in UK cards and the mix effect from growth in secured lending. Net fee, commission and other income increased 8% to £1,465m, due to increased debt sales and the impact of treasury operations
	-	Personal Banking income was stable at £4,009m (2018: £4,006m), reflecting ongoing mortgage margin pressure, offset by mortgage and deposit balance growth, improved deposit margins and treasury operations
	-	Barclaycard Consumer UK income decreased 5% to £1,992m reflecting a continued reduced risk appetite and reduced borrowing by customers, which resulted in a lower level of IEL balances, partially offset by increased debt sales
	-	Business Banking income increased 6% to £1,352m driven by deposit growth, with improved deposit margins, and the non-recurrence of client remediation in 2018
●	Credit impairment charges decreased 14% to £712m reflecting the non-recurrence of a £100m specific charge in Q418 relating to the impact of anticipated economic uncertainty in the UK. Unsecured gross exposures were lower as a result of increased debt sales and an improved risk profile, both principally in UK cards. The 30 and 90 day arrears rates in UK cards decreased to 1.7% (Q418: 1.8%) and 0.8% (Q418: 0.9%) respectively
●	Operating expenses decreased 2% to £4,037m as cost efficiencies were partially offset by planned investment and inflation. The cost: income ratio, excluding litigation and conduct, was 55% (2018: 56%)

 

Balance sheet

 

●	Loans and advances to customers at amortised cost increased 3% to £193.7bn reflecting £6.4bn of mortgage growth
●	Customer deposits at amortised cost increased 4% to £205.5bn demonstrating franchise strength across both Personal and Business Banking
●	RWAs were stable at £74.9bn (2018: £75.2bn) as a reduction in UK cards (reflecting increased debt sales, lower IEL balances and an improved risk profile) was offset by growth in mortgages

 

Barclays International	Year ended	Year ended
	31.12.19	31.12.18
Income statement information	£m	£m	% Change
Net interest income	3,941	3,815	3
Net trading income	4,199	4,450	(6)
Net fee, commission and other income	6,535	5,761	13
Total income	14,675	14,026	5
Credit impairment charges	(1,173)	(658)	(78)
Net operating income	13,502	13,368	1
Operating costs	(9,163)	(9,324)	2
UK bank levy	(174)	(210)	17
Operating expenses	(9,337)	(9,534)	2
Litigation and conduct	(116)	(127)	9
Total operating expenses	(9,453)	(9,661)	2
Other net income	69	68	1
Profit before tax	4,118	3,775	9
Attributable profit1	2,816	2,599	8
Balance sheet information	£bn	£bn
Loans and advances at amortised cost	132.8	127.2
Trading portfolio assets	113.3	104.0
Derivative financial instrument assets	228.9	222.1
Financial assets at fair value through the income statement	128.4	144.7
Cash collateral and settlement balances	79.4	74.3
Other assets	178.6	189.8
Total assets	861.4	862.1
Deposits at amortised cost	210.0	197.2
Derivative financial instrument liabilities	228.9	219.6
Loan: deposit ratio	63%	65%
Risk weighted assets	209.2	210.7
Period end allocated tangible equity	29.6	29.9
Performance measures
Return on average allocated tangible equity	9.0%	8.4%
Average allocated tangible equity (£bn)	31.2	31.0
Cost: income ratio	64%	69%
Loan loss rate (bps)	86	50
Net interest margin	4.07%	4.11%
Performance measures excluding litigation and conduct2	£m	£m
Profit before tax	4,234	3,902	9
Attributable profit	2,906	2,705	7
Return on average allocated tangible equity	9.3%	8.7%
Cost: income ratio	64%	68%

 

1	From 2019, due to an IAS 12 update, the tax relief on payments in relation to AT1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated. This change does not impact EPS or return on average tangible shareholders' equity.
2	Refer to pages 62 to 71 for further information and calculations of performance measures excluding litigation and conduct.

 

Analysis of Barclays International
Corporate and Investment Bank	Year ended	Year ended
	31.12.19	31.12.18
Income statement information	£m	£m	% Change
FICC	3,364	2,863	17
Equities	1,887	2,037	(7)
Markets	5,251	4,900	7
Advisory	776	708	10
Equity capital markets	329	300	10
Debt capital markets	1,430	1,523	(6)
Banking fees	2,535	2,531	-
Corporate lending	765	878	(13)
Transaction banking	1,680	1,627	3
Corporate	2,445	2,505	(2)
Other1	-	(171)
Total income	10,231	9,765	5
Credit impairment (charges)/releases	(157)	150
Net operating income	10,074	9,915	2
Operating costs	(6,882)	(7,093)	3
UK bank levy	(156)	(188)	17
Operating expenses	(7,038)	(7,281)	3
Litigation and conduct	(109)	(68)	(60)
Total operating expenses	(7,147)	(7,349)	3
Other net income	28	27	4
Profit before tax	2,955	2,593	14
Attributable profit2	1,980	1,781	11
Balance sheet information	£bn	£bn
Loans and advances at amortised cost	92.0	86.4
Trading portfolio assets	113.3	104.0
Derivative financial instrument assets	228.8	222.1
Financial assets at fair value through the income statement	127.7	144.2
Cash collateral and settlement balances	78.5	73.4
Other assets	155.3	160.4
Total assets	795.6	790.5
Deposits at amortised cost	146.2	136.3
Derivative financial instrument liabilities	228.9	219.6
Risk weighted assets	171.5	170.9
Performance measures
Return on average allocated tangible equity	7.6%	6.9%
Average allocated tangible equity (£bn)	25.9	26.0
Cost: income ratio	70%	75%
Performance measures excluding litigation and conduct3	£m	£m
Profit before tax	3,064	2,661	15
Attributable profit	2,064	1,843	12
Return on average allocated tangible equity	8.0%	7.1%
Cost: income ratio	69%	75%

 

1	From 2019, treasury items previously included in Other have been allocated to businesses.
2	From 2019, due to an IAS 12 update, the tax relief on payments in relation to AT1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated. This change does not impact EPS or return on average tangible shareholders' equity.
3	Refer to pages 62 to 71 for more information and calculations of performance measures excluding litigation and conduct.

 

Analysis of Barclays International
Consumer, Cards and Payments	Year ended	Year ended
	31.12.19	31.12.18
Income statement information	£m	£m	% Change
Net interest income	2,822	2,731	3
Net fee, commission, trading and other income	1,622	1,530	6
Total income	4,444	4,261	4
Credit impairment charges	(1,016)	(808)	(26)
Net operating income	3,428	3,453	(1)
Operating costs	(2,281)	(2,231)	(2)
UK bank levy	(18)	(22)	18
Operating expenses	(2,299)	(2,253)	(2)
Litigation and conduct	(7)	(59)	88
Total operating expenses	(2,306)	(2,312)	-
Other net income	41	41	-
Profit before tax	1,163	1,182	(2)
Attributable profit1	836	818	2
Balance sheet information	£bn	£bn
Loans and advances at amortised cost	40.8	40.8
Total assets	65.8	71.6
Deposits at amortised cost	63.8	60.9
Risk weighted assets	37.7	39.8
Key facts
30 day arrears rate - Barclaycard US	2.7%	2.7%
US cards customer FICO score distribution
<660	14%	14%
>660	86%	86%
Total number of Barclaycard payments clients	c.376,000	c.374,000
Value of payments processed (£bn)2	354	344
Performance measures
Return on average allocated tangible equity	15.8%	16.5%
Average allocated tangible equity (£bn)	5.3	5.0
Cost: income ratio	52%	54%
Loan loss rate (bps)	234	185
Performance measures excluding litigation and conduct3	£m	£m
Profit before tax	1,170	1,241	(6)
Attributable profit	842	862	(2)
Return on average allocated tangible equity	15.9%	17.3%
Cost: income ratio	52%	53%

 

1	From 2019, due to an IAS 12 update, the tax relief on payments in relation to AT1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated. This change does not impact EPS or return on average tangible shareholders' equity.
2	Includes £272bn of merchant acquiring payments.
3	Refer to pages 62 to 71 for more information and calculations of performance measures excluding litigation and conduct.

 

Barclays International continued to make good progress on its strategy in 2019, with an improved performance in CIB and in CC&P. CIB delivered an RoTE of 8.0%, up 0.9%, with both Markets and Banking improving their market share1,2 and demonstrating a disciplined approach to costs. CC&P delivered an RoTE of 15.9% reflecting continued growth in US co-branded cards and payments partnerships.

 

2019 compared to 2018

 

Income statement

 

●	Profit before tax, excluding litigation and conduct, increased 9% to £4,234m with an RoTE of 9.3% (2018: 8.7%), reflecting returns in the CIB of 8.0% (2018: 7.1%) and CC&P of 15.9% (2018: 17.3%)
●	The 4% appreciation of average USD against GBP positively impacted income and profits, and adversely impacted credit impairment charges and operating expenses
●	Total income increased to £14,675m (2018: £14,026m)
	-	CIB income increased 5% to £10,231m
		-	Markets income increased 7% to £5,251m reflecting further gains in market share in a declining revenue pool1. FICC income increased 17% to £3,364m reflecting a strong performance in rates and growth in securitised products. Equities income decreased 7% to £1,887m driven by equity derivatives, which were impacted by reduced client activity. Included in Markets was a £180m gain related to the Tradeweb position and a net loss of £77m due to the impact of treasury operations and hedging counterparty risk
		-	Banking fees income was stable at £2,535m. The business continued to gain market share in a declining fee pool2
		-	Within Corporate, Transaction banking income increased 3% to £1,680m reflecting growth in deposits. This was offset by a decrease in Corporate lending income to £765m (2018: £878m). Excluding mark-to-market movements on loan hedges, Corporate lending income was broadly stable
	-	CC&P income increased 4% to £4,444m reflecting growth in US co-branded cards and payments partnerships
●	Credit impairment charges increased to £1,173m (2018: £658m)
	-	CIB credit impairment charges increased to £157m (2018: release of £150m) due to the non-recurrence of favourable macroeconomic scenario updates and single name recoveries in 2018
	-	CC&P credit impairment charges increased to £1,016m (2018: £808m), reflecting the non-recurrence of favourable US macroeconomic scenario updates in 2018, as well as higher unsecured gross exposures due to balance growth in cards. Credit metrics remained stable, with 30 and 90 day arrears rates in US cards of 2.7% (Q418: 2.7%) and 1.4% (Q418: 1.4%) respectively
●	Operating expenses decreased 2% to £9,337m
	-	CIB operating expenses decreased 3% to £7,038m as cost efficiencies were partially offset by continued investment
	-	CC&P operating expenses increased 2% to £2,299m reflecting continued investment

 

Balance sheet

 

●	Loans and advances increased £5.6bn to £132.8bn mainly due to an increase in debt securities
●	Trading portfolio assets increased £9.3bn to £113.3bn due to increased trading activity, principally relating to the Equities business
●	Derivative financial instrument assets and liabilities increased £6.8bn to £228.9bn and £9.3bn to £228.9bn respectively driven by a decrease in major interest rate curves, partially offset by a decrease in foreign exchange volumes
●	Financial assets at fair value through the income statement decreased £16.3bn to £128.4bn driven by a focus on capital-efficient secured financing
●	Other assets decreased £11.2bn to £178.6bn predominantly due to a reduction in cash at central banks held as part of the liquidity pool
●	Deposits at amortised cost increased £12.8bn to £210.0bn due to increased deposits within CIB including the broadening of the business across Europe
●	RWAs decreased to £209.2bn (December 2018: £210.7bn) driven predominantly by depreciation of USD against GBP

 

1	Data Source: Coalition, FY19 Preliminary Competitor Analysis. Market share represents Barclays share of the total industry Revenue Pool. Analysis is based on Barclays internal business structure and internal revenues.
2	Data Source: Dealogic, for the period covering 1 January to 31 December 2019.

 

Head Office	Year ended	Year ended
	31.12.19	31.12.18
Income statement information	£m	£m	% Change
Net interest income	(422)	(781)	46
Net fee, commission and other income	26	508	(95)
Total income	(396)	(273)	(45)
Credit impairment (charges)/releases	(27)	16
Net operating income	(423)	(257)	(65)
Operating costs	(200)	(228)	12
UK bank levy	(11)	(13)	15
Operating expenses	(211)	(241)	12
GMP charge	-	(140)
Litigation and conduct	(151)	(1,597)	91
Total operating expenses	(362)	(1,978)	82
Other net income/(expenses)	2	(2)
Loss before tax	(783)	(2,237)	65
Attributable loss1	(636)	(2,200)	71
Balance sheet information	£bn	£bn
Total assets	21.0	21.5
Risk weighted assets	11.0	26.0
Period end allocated tangible equity	5.6	4.9
Performance measures
Average allocated tangible equity (£bn)	5.1	3.1
Performance measures excluding litigation and conduct2	£m	£m
Loss before tax	(632)	(640)	1
Attributable loss	(525)	(642)	18

 

1	From 2019, due to an IAS 12 update, the tax relief on payments in relation to AT1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated. This change does not impact EPS or return on average tangible shareholders' equity.
2	Refer to pages 62 to 71 for further information and calculations of performance measures excluding litigation and conduct.

 

2019 compared to 2018

 

Income statement

 

●

Loss before tax, excluding litigation and conduct was £632m (2018: £640m). Including litigation and conduct charges of £151m (2018: £1,597m), loss before tax was £783m (2018: £2,237m), which reflected the non-recurrence of the £1,420m Residential Mortgage Backed Securities settlement in 2018

●

Total income was an expense of £396m (2018: £273m), which included the funding costs of legacy capital instruments, treasury items and hedge accounting expenses, partially offset by the recognition of dividends on Barclays' stake in Absa Group Limited. The increase in income expense was mainly due to the non-recurrence of a £155m one-off gain in 2018 from the settlement of receivables relating to the Lehman Brothers acquisition

 

Balance sheet

 

●	Average allocated tangible equity increased to £5.1bn (2018: £3.1bn) mainly due to excess capital held in Head Office as a result of the Group's average CET1 ratio for 2019 being above the 13.0% used in the allocation of equity to the businesses
●	RWAs decreased to £11.0bn (December 2018: £26.0bn) mainly driven by the removal of the Group's operational risk RWAs floor

 

Quarterly Results Summary

 

Barclays Group
	Q419	Q319	Q219	Q119		Q418	Q318	Q218	Q118
Income statement information	£m	£m	£m	£m		£m	£m	£m	£m
Net interest income	2,344	2,445	2,360	2,258		2,296	2,388	2,190	2,188
Net fee, commission and other income	2,957	3,096	3,178	2,994		2,777	2,741	3,386	3,170
Total income	5,301	5,541	5,538	5,252		5,073	5,129	5,576	5,358
Credit impairment charges	(523)	(461)	(480)	(448)		(643)	(254)	(283)	(288)
Net operating income	4,778	5,080	5,058	4,804		4,430	4,875	5,293	5,070
Operating costs	(3,308)	(3,293)	(3,501)	(3,257)		(3,624)	(3,329)	(3,310)	(3,364)
UK bank levy	(226)	-	-	-		(269)	-	-	-
Operating expenses	(3,534)	(3,293)	(3,501)	(3,257)		(3,893)	(3,329)	(3,310)	(3,364)
GMP charge	-	-	-	-		(140)	-	-	-
Litigation and conduct	(167)	(1,568)	(53)	(61)		(60)	(105)	(81)	(1,961)
Total operating expenses	(3,701)	(4,861)	(3,554)	(3,318)		(4,093)	(3,434)	(3,391)	(5,325)
Other net income/(expenses)	20	27	27	(3)		37	20	(7)	19
Profit/(loss) before tax	1,097	246	1,531	1,483		374	1,461	1,895	(236)
Tax charge1	(189)	(269)	(297)	(248)		(75)	(192)	(386)	(258)
Profit/(loss) after tax	908	(23)	1,234	1,235		299	1,269	1,509	(494)
Non-controlling interests	(42)	(4)	(17)	(17)		(83)	(43)	(55)	(53)
Other equity instrument holders	(185)	(265)	(183)	(180)		(230)	(176)	(175)	(171)
Attributable profit/(loss)1	681	(292)	1,034	1,038		(14)	1,050	1,279	(718)
Performance measures
Return on average tangible shareholders' equity	5.9%	(2.4%)	9.0%	9.2%		(0.1%)	9.4%	11.8%	(6.5%)
Average tangible shareholders' equity (£bn)	46.4	48.4	46.2	45.2		44.3	44.6	43.5	44.2
Cost: income ratio	70%	88%	64%	63%		81%	67%	61%	99%
Loan loss rate (bps)	60	52	56	54		77	30	35	36
Basic earnings/(loss) per share	3.9p	(1.7p)	6.0p	6.1p		(0.1p)	6.1p	7.5p	(4.2p)
Performance measures excluding litigation and conduct2	£m	£m	£m	£m		£m	£m	£m	£m
Profit before tax	1,264	1,814	1,584	1,544		434	1,566	1,976	1,725
Attributable profit	803	1,233	1,074	1,084		48	1,135	1,338	1,212
Return on average tangible shareholders' equity	6.9%	10.2%	9.3%	9.6%		0.4%	10.2%	12.3%	11.0%
Cost: income ratio	67%	59%	63%	62%		79%	65%	59%	63%
Basic earnings per share	4.7p	7.2p	6.3p	6.3p		0.3p	6.6p	7.8p	7.1p
Balance sheet and capital management3	£bn	£bn	£bn	£bn		£bn	£bn	£bn	£bn
Total assets	1,140.2	1,290.4	1,232.8	1,193.5		1,133.3	1,170.8	1,149.6	1,142.2
Tangible net asset value per share	262p	274p	275p	266p		262p	260p	259p	251p
Common equity tier 1 ratio	13.8%	13.4%	13.4%	13.0%		13.2%	13.2%	13.0%	12.7%
Common equity tier 1 capital	40.8	41.9	42.9	41.4		41.1	41.7	41.4	40.2
Risk weighted assets	295.1	313.3	319.1	319.7		311.9	316.2	319.3	317.9
Average UK leverage ratio	4.5%	4.6%	4.7%	4.6%		4.5%	4.6%	4.6%	4.6%
Average UK leverage exposure	1,142.8	1,171.2	1,134.6	1,105.5		1,110.0	1,119.0	1,081.8	1,089.9
UK leverage ratio	5.1%	4.8%	5.1%	4.9%		5.1%	4.9%	4.9%	4.8%
UK leverage exposure	1,007.7	1,099.8	1,079.4	1,065.0		998.6	1,063.5	1,030.1	1,030.8
Funding and liquidity
Group liquidity pool (£bn)	211	226	238	232		227	213	214	207
Liquidity coverage ratio	160%	151%	156%	160%		169%	161%	154%	147%
Loan: deposit ratio	82%	82%	82%	80%		83%	83%	83%	84%

 

1	From 2019, due to an IAS 12 update, the tax relief on payments in relation to AT1 instruments has been recognised in the tax charge of the income statement, whereas it was previously recorded in retained earnings. Comparatives have been restated. This change does not impact EPS or return on average tangible shareholders' equity.
2	Refer to pages 62 to 71 for further information and calculations of performance measures excluding litigation and conduct.
3	Refer to pages 41 to 46 for further information on how capital, RWAs and leverage are calculated.

 

Quarterly Results by Business

 

Barclays UK
	Q419	Q319	Q219	Q119		Q418	Q318	Q218	Q118
Income statement information	£m	£m	£m	£m		£m	£m	£m	£m
Net interest income	1,478	1,503	1,438	1,469		1,513	1,529	1,493	1,493
Net fee, commission and other income	481	343	333	308		350	367	343	295
Total income	1,959	1,846	1,771	1,777		1,863	1,896	1,836	1,788
Credit impairment charges	(190)	(101)	(230)	(191)		(296)	(115)	(214)	(201)
Net operating income	1,769	1,745	1,541	1,586		1,567	1,781	1,622	1,587
Operating costs	(1,023)	(952)	(1,022)	(999)		(1,114)	(988)	(968)	(1,005)
UK bank levy	(41)	-	-	-		(46)	-	-	-
Operating expenses	(1,064)	(952)	(1,022)	(999)		(1,160)	(988)	(968)	(1,005)
Litigation and conduct	(58)	(1,480)	(41)	(3)		(15)	(54)	(3)	(411)
Total operating expenses	(1,122)	(2,432)	(1,063)	(1,002)		(1,175)	(1,042)	(971)	(1,416)
Other net (expenses)/income	-	-	(1)	1		(2)	1	5	(1)
Profit/(loss) before tax	647	(687)	477	585		390	740	656	170
Attributable profit/(loss)1	438	(907)	328	422		241	510	473	(26)
Balance sheet information	£bn	£bn	£bn	£bn		£bn	£bn	£bn	£bn
Loans and advances to customers at amortised cost	193.7	193.2	189.1	187.5		187.6	186.7	185.3	184.3
Total assets	257.8	257.9	259.0	253.1		249.7	252.0	245.9	235.2
Customer deposits at amortised cost	205.5	203.3	200.9	197.3		197.3	195.8	194.3	192.0
Loan: deposit ratio	96%	97%	97%	96%		96%	96%	96%	96%
Risk weighted assets	74.9	76.8	76.2	76.6		75.2	74.8	75.0	72.5
Period end allocated tangible equity	10.3	10.4	10.3	10.5		10.2	10.1	10.2	9.8
Performance measures
Return on average allocated tangible equity	17.0%	(34.9%)	12.7%	16.3%		9.6%	20.1%	18.8%	(1.1%)
Average allocated tangible equity (£bn)	10.3	10.4	10.3	10.4		10.1	10.1	10.1	9.8
Cost: income ratio	57%	132%	60%	56%		63%	55%	53%	79%
Loan loss rate (bps)	38	20	47	40		61	24	45	43
Net interest margin	3.03%	3.10%	3.05%	3.18%		3.20%	3.22%	3.22%	3.27%
Performance measures excluding litigation and conduct2	£m	£m	£m	£m		£m	£m	£m	£m
Profit before tax	705	793	518	588		405	794	659	581
Attributable profit	481	550	358	424		253	558	474	385
Return on average allocated tangible equity	18.7%	21.2%	13.9%	16.4%		10.1%	22.0%	18.8%	15.7%
Cost: income ratio	54%	52%	58%	56%		62%	52%	53%	56%