Barclays PLC — Earnings Release 2016

Oct 27, 2016

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RNS Number : 5669N Barclays PLC 27 October 2016 Barclays PLC Q3 2016 Results Announcement 30 September 2016 Performance Highlights Transatlantic Consumer, Corporate and Investment Bank with Global Reach Our strategy is on track with good progress year to date · Core returns: · Core business performed well, with a 4% growth in profit before tax to £4,898m delivering a Core return on tangible equity (RoTE) excluding notable items1 of 10.7% · Non-Core rundown: · Remain on track to close Non-Core in 2017 with strong progress on business disposals · £10bn reduction in RWAs to £44bn, despite adverse Foreign Exchange (FX) movements · Completed sale of the Barclays Risk Analytics and Index Solutions Ltd. business in Q316, resulting in a pre-tax gain of £535m · Common Equity Tier 1 (CET1) ratio: · CET1 ratio of 11.6% with strong organic capital growth offset by headwinds from the UK Retirement Fund (UKRF) defined benefit pension deficit and £1,000m of provisions for UK customer redress in the nine months to September 2016 · On track to meet end-state capital requirements · Core costs: · On track to meet the £12.8bn 2016 Core cost guidance2 adjusted for FX. Based on an average USD/GBP exchange rate of 1.30 for H216 this equates to £13.0bn · We are reducing the real estate footprint resulting in restructuring costs in Barclays International of £150m in Q316 with a structurally lower cost base going forward · Barclays Africa Group Limited (BAGL) sell down: · First sale of 12.2% stake completed in May 2016, resulting in a c.10bps benefit to the CET1 ratio · Remain on track to achieve regulatory deconsolidation within 2 to 3 years · Holding Company (HoldCo) transition: · Progressed the HoldCo transition with £10.9bn equivalent of issuance and £7.4bn equivalent of Operating Company (OpCo) capital and debt bought back or redeemed · Q316 included the redemption of $750m USD preference shares, the second such redemption in 2016, and a £0.6bn equivalent liability management exercise Strong Core business performance with underlying double digit Return on Tangible Equity · Core profit before tax increased 4% to £4,898m reflecting diversification benefits from consumer and wholesale customers and clients, geographies and products, and the appreciation of USD and EUR against GBP · Double digit Core RoTE of 10.7% (Q315 YTD: 12.9%) excluding notable items based on an increased average tangible equity base of £40bn (Q315 YTD: £36bn) with a basic earnings per share contribution of 19.4p (Q315 YTD: 21.3p) excluding notable items · Strong Barclays UK RoTE of 20.0% (Q315 YTD: 23.2%) excluding notable items. Net interest margin (NIM) increased 7bps to 3.63% on increased customer deposit balances, offset by lower interchange fee income in Barclaycard Consumer UK and higher credit impairment charges following a one-off impact from a management review of the cards portfolio impairment modelling · Double digit Barclays International RoTE of 10.5% (Q315 YTD: 11.5%) excluding notable items. Strong growth in Consumer, Cards and Payments products and encouraging CIB performance, particularly in Q316 · Group profit before tax decreased 10% to £2,900m driven by the acceleration of Non-Core rundown resulting in a 33% increase in loss before tax to £1,998m · Group RoTE decreased to 4.4% (Q315 YTD: 5.8%) · Tangible net asset value per share decreased modestly to 287p (June 2016: 289p) in the quarter driven by the UKRF defined benefit pension net assets moving from a £0.1bn surplus to a £1.1bn deficit and £600m of provisions for UK customer redress, partially offset by favourable currency translation reserve movements and profit generated in the period James E Staley, Group Chief Executive Officer, said: "Our strategic priorities remain: strengthening our Core businesses; closing Barclays Non-Core as fast as possible; progressing the sell down of our stake in Barclays Africa to a point where we can achieve regulatory deconsolidation; eliminating costs in both Core and Non-Core; dealing with legacy issues; and meeting our end state capital requirements. Taken together, the picture in the third quarter is one of strong progress against this agenda. Our Core businesses are performing well, Non-Core rundown is approaching the final lap toward closure, we are on top of costs, and our capital position is resilient with strong reasons for confidence in meeting our end state target. The growing momentum in attaining our strategic goals means we can feel optimistic of our prospects of completing the restructuring of Barclays - a restructuring to a simplified transatlantic, consumer, corporate and investment bank with the capacity to deliver sustainable high quality returns for shareholders. This quarter has seen us take another important stride toward that state." 1 References to underlying performance exclude the impact of notable items. Notable items in Core resulted in a net loss before tax of £465m (Q315 YTD: £693m), as detailed on page 3. 2 Guidance excludes litigation and conduct charges. Barclays Group results for the nine months ended 30.09.16 30.09.15 £m £m % Change Total income net of insurance claims 16,459 17,592 (6) Credit impairment charges and other provisions (1,720) (1,208) (42) Net operating income 14,739 16,384 (10) Operating expenses (10,753) (10,176) (6) Litigation and conduct (1,266) (2,665) 52 Total operating expenses (12,019) (12,841) 6 Other net income/(expenses) 180 (322) Profit before tax 2,900 3,221 (10) Tax charge (1,043) (985) (6) Profit after tax in respect of continuing operations 1,857 2,236 (17) Profit after tax in respect of discontinued operation1 520 525 (1) Non-controlling interests in respect of continuing operations (255) (247) (3) Non-controlling interests in respect of discontinued operation1 (280) (248) (13) Other equity holders2 (318) (238) (34) Attributable profit 1,524 2,028 (25) Performance measures Return on average tangible shareholders' equity2 4.4% 5.8% Average tangible shareholders' equity (£bn) 49 48 Cost: income ratio 73% 73% Loan loss rate (bps) 48 35 Basic earnings per share2 9.6p 12.4p Dividend per share 1.0p 3.0p As at As at As at Balance sheet and capital management 30.09.16 30.06.16 31.12.15 Tangible net asset value per share 287p 289p 275p Common equity tier 1 ratio 11.6% 11.6% 11.4% Common equity tier 1 capital £43.2bn £42.4bn £40.7bn Risk weighted assets £373bn £366bn £358bn Leverage ratio 4.2% 4.2% 4.5% Fully loaded tier 1 capital £49.9bn £47.9bn £46.2bn Leverage exposure £1,185bn £1,155bn £1,028bn Funding and liquidity Group liquidity pool £157bn £149bn £145bn Estimated CRD IV liquidity coverage ratio 125% 124% 133% Loan: deposit ratio3 85% 85% 86% 1 Refer to page 15 for further information on the Africa Banking discontinued operation. 2 The profit after tax attributable to other equity holders of £318m (Q315 YTD: £238m) is offset by a tax credit recorded in reserves of £89m (Q315 YTD: £48m). The net amount of £229m (Q315 YTD: £190m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity. 3 Loan: deposit ratio for Barclays UK, Consumer, Cards and Payments, Corporate, and Non-Core retail. Barclays Core and Non-Core results for the nine months ended Barclays Core Barclays Non-Core 30.09.16 30.09.15 30.09.16 30.09.15 £m £m % Change £m £m % Change Total income net of insurance claims 17,204 16,912 2 (745) 680 Credit impairment charges and other provisions (1,645) (1,106) (49) (75) (102) 26 Net operating income/(expenses) 15,559 15,806 (2) (820) 578 Operating expenses (9,585) (8,773) (9) (1,168) (1,403) 17 Litigation and conduct (1,071) (2,254) 52 (195) (411) 53 Total operating expenses (10,656) (11,027) 3 (1,363) (1,814) 25 Other net (expenses)/income (5) (55) 91 185 (267) Profit/(loss) before tax 4,898 4,724 4 (1,998) (1,503) (33) Tax (charge)/credit (1,703) (1,387) (23) 660 402 64 Profit/(loss) after tax 3,195 3,337 (4) (1,338) (1,101) (22) Non-controlling interests (221) (185) (19) (35) (62) 44 Other equity holders (273) (191) (43) (45) (47) 4 Attributable profit/(loss)1 2,701 2,961 (9) (1,418) (1,210) (17) Performance measures Return on average tangible equity 9.1% 11.0% Average allocated tangible equity (£bn)1 40 36 8 11 Period end allocated tangible equity (£bn)1 41 38 7 10 Cost: income ratio 62% 65% n/m n/m Loan loss rate (bps) 53 37 16 21 Basic earnings/(loss) per share contribution 16.5p 18.0p (8.3p) (7.2p) As at As at As at As at As at As at Capital management 30.09.16 30.06.16 31.12.15 30.09.16 30.06.16 31.12.15 Risk weighted assets1 £330bn £320bn £304bn £44bn £47bn £54bn Leverage exposure1 £1,065bn £1,021bn £879bn £120bn £134bn £149bn Notable items for the nine months ended 30.09.16 30.09.15 30.09.16 30.09.15 £m £m £m £m Own credit (80) 605 - - Gain on disposal of Barclays' share of Visa Europe Limited 615 - - - Gains on US Lehman acquisition assets - 496 - - Provisions for UK customer redress (1,000) (1,257) - (65) Provisions for ongoing investigations and litigation including Foreign Exchange - (869) - (201) Gains on valuation of a component of the defined retirement benefit liability - 429 - - Losses on sale relating to the Spanish and Portuguese business - (97) - (222) Total notable items (465) (693) - (488) Excluding notable items, the Core return on average tangible equity was 10.7% (Q315 YTD: 12.9%) and the Core basic earnings per share was 19.4p (Q315 YTD: 21.3p). Excluding notable items, the Non-Core basic loss per share was 8.3p (Q315 YTD: 5.1p). 1 Attributable profit in respect of the Africa Banking discontinued operation is reported at the Group level only. Allocated tangible equity, RWAs and leverage exposure are reported in Head Office within Core. Nine months ended Nine months ended 30.09.16 30.09.15 Income by business £m £m % Change Barclays UK 5,689 5,509 3 Barclays International 11,403 10,779 6 Head Office 112 624 (82) Barclays Core 17,204 16,912 2 Barclays Non-Core (745) 680 Barclays Group 16,459 17,592 (6) Profit/(loss) before tax by business Barclays UK 1,155 1,432 (19) Barclays International 3,838 3,016 27 Head Office (95) 276 Barclays Core 4,898 4,724 4 Barclays Non-Core (1,998) (1,503) (33) Barclays Group 2,900 3,221 (10) Group Finance Director's Review Performance for the nine months ended September 2016 demonstrates Barclays' diversification benefits from the mix of consumer and wholesale customers and clients, geographies and products, and the associated benefit from the appreciation of USD and EUR against GBP. The Core business is performing well with a double digit RoTE excluding notable items on an increased average tangible equity base. The Non-Core rundown remains on track for closure in 2017. Capital ratio progression towards end state capital requirements is also strong, while balancing capital growth with earnings accretive actions, such as the reduction in the real estate footprint and redemption of USD preference shares. The Core business generated positive cost: income jaws and we intend to continue to reduce the Group's structural cost base, targeting a Group cost: income ratio of less than 60% over time. Group performance · Profit before tax decreased 10% to £2,900m. The Group performance reflected strong Core results while being impacted by the acceleration of Non-Core rundown resulting in a loss before tax of £1,998m (Q315 YTD: £1,503m), provisions for UK customer redress of £1,000m (Q315 YTD: £1,322m) and the appreciation of average USD and EUR against GBP, positively impacting income and adversely affecting impairment and operating expenses · Return on average tangible shareholders' equity was 4.4% (Q315 YTD: 5.8%) and basic earnings per share was 9.6p (Q315 YTD: 12.4p) · Total income net of insurance claims decreased 6% to £16,459m as the acceleration of Non-Core rundown resulted in income reducing £1,425m to a net expense of £745m, while Core income increased 2% to £17,204m · While delinquency rates remained broadly stable, credit impairment charges increased 42% to £1,720m primarily driven by a one-off £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling. Q116 also included impairment of a number of single name exposures, largely in respect of counterparties in the oil and gas sector. These resulted in a 13bps increase in the loan loss rate to 48bps · Total operating expenses reduced 6% to £12,019m reflecting savings from strategic cost programmes as well as lower litigation and conduct charges. Operating expenses included a £150m charge in Barclays International in Q316, relating to a reduction in the real estate footprint which will generate savings in future periods, increased structural reform implementation costs, the continued business growth in Consumer, Cards and Payments and the non-recurrence of the prior year gains of £429m on valuation of a component of the defined retirement benefit liability · The effective tax rate on profit before tax increased to 36.0% (Q315 YTD: 30.6%) principally as a result of an increase in non-deductible provisions and, with effect from January 2016, a new corporation tax surcharge of 8% on banks' UK profits · Profit after tax in respect of continuing operations decreased 17% to £1,857m. Profit after tax in relation to the Africa Banking discontinued operation decreased 1% to £520m · In the nine months ended September 2016, notable items resulted in a net loss before tax of £465m (Q315 YTD: £1,181m) comprising provisions for UK customer redress of £1,000m (Q315 YTD: £1,322m), a £615m (Q315 YTD: £nil) gain on disposal of Barclays' share of Visa Europe Limited and an own credit loss of £80m (Q315 YTD: gain of £605m) All performance commentary which follows is on an underlying basis, excluding notable items. Core performance · Profit before tax decreased 1% to £5,363m, including the benefit of the appreciation of average USD and EUR against GBP. This reflected solid performance in both Barclays UK and Barclays International, generating positive cost: income jaws and an improvement in the cost: income ratio to 58% (Q315 YTD: 59%) · The Core business generated an RoTE of 10.7% (Q315 YTD: 12.9%) based on an increased average tangible equity base of £40bn (Q315 YTD: £36bn), as capital was returned from Non-Core · Total income increased 5% to £16,669m, with Barclays UK income increasing 1% to £5,538m and Barclays International income increasing 6% to £10,939m with growth in both CIB and Consumer, Cards and Payments · Credit impairment charges increased 49% to £1,645m resulting in a 16bps increase in the loan loss rate to 53bps primarily due to a one-off £320m charge in Q316 following the management review of the UK and US cards portfolio impairment modelling · Total operating expenses increased 3% to £9,656m. The 2016 Core cost guidance of £12.8bn, excluding litigation and conduct charges and adjusted for FX, remains on track. Based on an average USD/GBP exchange rate of 1.30 in H216 this equates to £13bn Barclays UK · RoTE was 20.0% (Q315 YTD: 23.2%), as profit before tax decreased 8% to £2,004m driven by an increase in credit impairment charges, while the cost: income ratio improved to 51% (Q315 YTD: 52%) · Total income increased 1% to £5,538m through steady growth in balances and pricing discipline - Personal Banking income increased 2% to £2,828m driven by improved deposit margins and balance growth, partially offset by mortgage margin pressure - Barclaycard Consumer UK income decreased 3% to £1,515m reflecting the impact of the European Interchange Fee Regulation, which came into full effect from December 2015, partially offset by balance growth and a gain from a debt sale in Q316 - Wealth, Entrepreneurs & Business Banking (WEBB) income increased 1% to £1,195m reflecting deposit growth, partially offset by reduced transactional appetite from investors and a reduction in assets under management in Wealth - Net interest income increased 2% to £4,546m due to deposit balance growth and pricing initiatives, partially offset by a lower mortgage margin. NIM increased 7bps to 3.63% reflecting higher margins on Personal Banking deposits and income from treasury operations in Q316 · Credit impairment charges increased 47% to £716m primarily due to a one-off £200m charge in Q316 following the management review of the cards portfolio impairment modelling. Excluding this charge, impairment trends remained broadly stable, with the 30 and 90 day arrears rates on the cards portfolio improving year-on-year to 2.0% (Q315 YTD: 2.2%) and 1.0% (Q315 YTD: 1.1%) respectively · Total operating expenses decreased 1% to £2,817m driven by savings realised from strategic cost programmes, partially offset by increased structural reform programme implementation costs Barclays International · RoTE was 10.5% (Q315 YTD: 11.5%), within which Consumer, Cards and Payments RoTE was 21.3% (Q315 YTD: 19.9%) and CIB RoTE was 8.7% (Q315 YTD: 10.3%) · Profit before tax decreased 2% to £3,374m reflecting strong growth in Consumer, Cards and Payments, encouraging CIB results, and the benefit from the appreciation of average USD and EUR against GBP more than offset by an increase in impairment charges · Total income increased 6% to £10,939m, as Consumer Cards and Payments income increased 21% to £2,937m and CIB income increased 2% to £8,002m - Markets income increased 4% to £4,103m, within which Credit income increased 47% to £924m driven by a strong performance in the fixed income credit flow businesses, Equities income decreased 13% to £1,380m following simplification of the business model, and Macro income increased 4% to £1,799m driven by continued momentum in Q316 and reflecting increased activity post the EU referendum - Banking income decreased 1% to £3,895m, within which Banking fee income increased 7% to £1,747m, driven by higher debt underwriting and financial advisory fees, Corporate lending income decreased 15% to £892m, due to reduced income from hedges, and Transactional banking income increased 1% to £1,256m driven by increased income from higher deposit balances and an increase in payment volumes - Consumer, Cards and Payments income increased 21% to £2,937m driven by continued growth in Barclaycard US, including the benefit of portfolio acquisitions, Barclaycard Germany, Barclaycard Business Solutions and the Wealth International business - Net interest income increased 8% to £3,466m including income from treasury operations in Q316 and NIM1 increased to 4.89% (Q315 YTD: 4.56%) driven by growth in interest earning lending in Barclaycard US · Credit impairment charges increased 50% to £929m - CIB impairment increased 47% to £170m primarily from impairment of a number of single name exposures in Q116, largely in respect of counterparties in the oil and gas sector - Consumer, Cards and Payments impairment increased 51% to £759m due to growth in receivables and a one-off £120m charge in Q316 following the management review of the cards portfolio impairment modelling. Excluding this charge, impairment trends in US cards increased modestly year-on-year, with the 30 and 90 day arrears rates of 2.4% (Q315 YTD: 2.1%) and 1.1% (Q315 YTD: 1.0%) respectively · Total operating expenses increased 6% to £6,663m - CIB operating expenses increased 7% to £5,337m, including higher restructuring costs, £150m of which related to reducing the real estate footprint in Q316, and higher structural reform programme implementation costs, largely relating to the incorporation of the US Intermediate Holding Company (IHC) on 1 July 2016. These increases were partially offset by lower litigation and conduct charges - Consumer, Cards and Payments operating expenses increased 4% to £1,326m driven by continued business growth 1 Excludes Investment Banking related balances. Head Office · Loss before tax was £15m (Q315 YTD: £203m) reflecting increased net income from treasury operations and reduced structural reform implementation costs in operating expenses Non-Core performance · The Non-Core rundown remains on track, with RWAs decreasing £10bn to £44bn in the nine months to September 2016 despite the impact of the appreciation of USD and EUR against GBP, driven by a £5bn reduction in Derivatives and a £3bn reduction in Securities and loans including the completion of the sale of the Portuguese retail and insurance businesses and Italian banking network · Good progress has been made on business disposals, with the following completions in Q316: - Sale of Barclays Risk Analytics and Index Solutions, resulting in a pre-tax gain of £535m in other net income - Sale of the Italian retail banking network, resulting in a decrease in Non-Core RWAs of £0.6bn · Underlying loss before tax increased to £1,998m (Q315 YTD: £1,015m) · Total income net of insurance claims reduced £1,425m to a net expense of £745m, including fair value losses on the ESHLA portfolio of £436m (Q315 YTD: £203m) - Businesses income reduced £352m to £558m primarily due to the impact of lower income following the completion of the sale of the Barclays Wealth Americas, the European retail and UK Secured Lending businesses - Securities and loans income reduced £644m to a net expense of £799m primarily driven by the fair value losses on the ESHLA portfolio, the impact of restructuring the ESHLA Lender Option Borrower Option loan terms in Q216, the non-recurrence of a £91m provision release relating to a litigation matter in Q115, and the exit of historical investment banking businesses - Derivatives income reduced £429m to a net expense of £504m primarily reflecting the costs of running down the portfolio · Credit impairment charges improved 26% to £75m driven by lower impairment charges in Europe · Total operating expenses improved 12% to £1,363m reflecting reduced costs following the exit of businesses, partially offset by higher restructuring costs · The intention remains to close Non-Core in 2017 with c.£20bn RWAs, subject to prevailing FX rates Group capital and leverage · The fully loaded CRD IV CET1 ratio increased to 11.6% (December 2015: 11.4%) reflecting an increase in CET1 capital of £2.4bn to £43.2bn, whilst RWAs increased by £15bn to £373bn - The increase in CET1 capital was largely driven by strong profits of £1.8bn generated in the period, after absorbing the impact of notable items. Other favourable movements included the currency translation reserve as a result of the appreciation of all major currencies against GBP - This was partially offset by the UKRF defined benefit pension scheme moving to a £1.1bn deficit from a £0.8bn surplus at December 2015, leading to a 30bps adverse CET1 ratio movement. This is a result of AA corporate bond spreads tightening and gilt yields falling, causing the discount rate for the liability values to fall 151bps to 2.31% - The increase in RWAs was principally due to the appreciation of USD, EUR and ZAR against GBP, which more than offset RWA reductions in Non-Core · The leverage ratio decreased to 4.2% (December 2015: 4.5%) driven by a 15% increase in the leverage exposure to £1,185bn primarily within loans and advances and other assets, as well as the impact of the appreciation of USD and EUR against GBP. Fully loaded Tier 1 capital increased £3.8bn to £49.9bn, including an Additional Tier 1 (AT1) issuance of $1.5bn in Q316 · Tangible net asset value per share increased to 287p (December 2015: 275p) driven by profit generated in the period and net favourable reserve movements Group funding and liquidity · The Group continued to maintain surpluses to its internal and regulatory requirements in the nine months to September 2016 with a liquidity pool of £157bn (December 2015: £145bn). The increase was driven by the depreciation of GBP against other currencies and higher short term funding to provide additional liquidity. The Liquidity Coverage Ratio (LCR) was 125% (December 2015: 133%), equivalent to a surplus of £31bn (December 2015: £37bn) · Wholesale funding outstanding excluding repurchase agreements was £159bn as at September 2016 (December 2015: £142bn). The increase was driven by the depreciation of GBP against other currencies, holding company issuance and higher short term funding to provide additional liquidity. The Group issued £10.9bn equivalent of capital and senior unsecured debt from the holding company in the nine months to September 2016, of which £7.4bn equivalent and £0.8bn equivalent in public and private senior unsecured debt respectively, and £2.7bn of capital instruments. In the same period £7.4bn of Barclays Bank PLC capital and senior unsecured debt was bought back or called Other matters · Additional UK customer redress provisions of £1,000m (Q315 YTD £1,322m) relating to Payment Protection Insurance (PPI) were recognised in the nine months to September 2016. £400m was recognised in Q216 reflecting an updated estimate of costs, primarily relating to ongoing remediation programmes, with £600m recognised in Q316 to reflect the current estimate of the impact of the revised complaints deadline proposed in Financial Conduct Authority (FCA) consultation paper 16/20 issued on 2 August 2016. We will continue to review the adequacy of the provision levels in respect of the FCA's proposals which remain subject to consultation. The remaining PPI provision as at September 2016 was £2.3bn (December 2015: £2.1bn) · In Q216, Barclays redeemed its $1.15bn 7.75% Series 4 Non-Cumulative Callable Dollar Preference Shares. In Q316, Barclays redeemed its $750m 6.625% Series 2 Non-Cumulative Callable Dollar Preference Shares. These redemptions resulted in a 10bps detriment to the CET1 ratio, but will result in an ongoing reduction in preference share dividends payable of $139m per annum · The acquisition of Visa Europe Limited by Visa Inc. completed on 21 June 2016 resulted in the recognition of a pre-tax gain on disposal of £615m in income in Q216 · On 5 May 2016, Barclays executed the first tranche of the sell down of the Group's interest in BAGL with the sale of 12.2% of BAGL's issued share capital. Following completion of this first tranche, Barclays' holding represents 50.1% of BAGL's issued share capital. Barclays continues to explore opportunities to reduce its shareholding to a level that would permit regulatory deconsolidation. Barclays also continues to work closely with BAGL management on arrangements for operational separation of the two businesses, including the terms of transitional services arrangements and related separation payments · The Barclays US IHC was incorporated on 1 July 2016. The associated quarterly report to the Federal Reserve (FR Y-9C) will be released on 9 November 2016 Tushar Morzaria, Group Finance Director Results by Business Barclays UK Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Net interest income 4,546 4,464 2 Net fee, commission and other income 1,143 1,045 9 Total income 5,689 5,509 3 Credit impairment charges and other provisions (716) (487) (47) Net operating income 4,973 5,022 (1) Operating expenses (2,803) (2,544) (10) Litigation and conduct (1,014) (1,045) 3 Total operating expenses (3,817) (3,589) (6) Other net expenses (1) (1) - Profit before tax 1,155 1,432 (19) Attributable profit 445 1,031 (57) As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Loans and advances to customers at amortised cost 166.6 166.0 166.1 Total assets 209.1 204.6 202.5 Customer deposits 185.5 181.7 176.8 Risk weighted assets 67.4 67.1 69.5 Nine months ended Nine months ended Performance measures 30.09.16 30.09.15 Return on average tangible equity 6.9% 14.8% Average allocated tangible equity (£bn) 9.0 9.4 Cost: income ratio 67% 65% Loan loss rate (bps) 56 38 Loan: deposit ratio 90% 96% Net interest margin 3.63% 3.56% Notable items £m £m Gain on disposal of Barclays' share of Visa Europe Limited 151 - Provisions for UK customer redress (1,000) (1,040) Gain on valuation of a component of the defined retirement benefit liability - 296 Total notable items (849) (744) Excluding notable items, the Barclays UK return on average tangible equity was 20.0% (Q315 YTD: 23.2%). Analysis of Barclays UK Nine months ended Nine months ended 30.09.16 30.09.15 Analysis of total income £m £m % Change Personal Banking 2,957 2,770 7 Barclaycard Consumer UK 1,515 1,560 (3) Wealth, Entrepreneurs & Business Banking 1,217 1,179 3 Total income 5,689 5,509 3 Analysis of credit impairment charges and other provisions Personal Banking (133) (155) 14 Barclaycard Consumer UK (565) (312) (81) Wealth, Entrepreneurs & Business Banking (18) (20) 10 Total credit impairment charges and other provisions (716) (487) (47) As at As at As at 30.09.16 30.06.16 31.12.15 Analysis of loans and advances to customers at amortised cost £bn £bn £bn Personal Banking 135.3 134.7 134.0 Barclaycard Consumer UK 16.2 16.2 16.2 Wealth, Entrepreneurs & Business Banking 15.1 15.1 15.9 Total loans and advances to customers at amortised cost 166.6 166.0 166.1 Analysis of customer deposits Personal Banking 137.2 134.8 131.0 Barclaycard Consumer UK - - - Wealth, Entrepreneurs & Business Banking 48.3 46.9 45.8 Total customer deposits 185.5 181.7 176.8 Barclays International Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Net interest income 3,466 3,204 8 Net trading income 3,449 3,189 8 Net fee, commission and other income 4,488 4,386 2 Total income 11,403 10,779 6 Credit impairment charges and other provisions (929) (619) (50) Net operating income 10,474 10,160 3 Operating expenses (6,632) (6,022) (10) Litigation and conduct (31) (1,159) 97 Total operating expenses (6,663) (7,181) 7 Other net income 27 37 (27) Profit before tax 3,838 3,016 27 Attributable profit 2,369 1,782 33 As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Loans and advances to banks and customers at amortised cost1 233.7 230.6 184.1 Trading portfolio assets 73.8 68.1 61.9 Derivative financial instrument assets 155.6 181.4 111.5 Derivative financial instrument liabilities 160.5 187.5 119.0 Reverse repurchase agreements and other similar secured lending 17.3 19.7 24.7 Financial assets designated at fair value 72.0 68.3 46.8 Total assets 681.9 679.9 532.2 Customer deposits2 224.1 226.5 185.6 Risk weighted assets 214.6 209.3 194.8 Nine months ended Nine months ended Performance measures 30.09.16 30.09.15 Return on average tangible equity 12.9% 9.7% Average allocated tangible equity (£bn) 25.2 24.9 Cost: income ratio 58% 67% Loan loss rate (bps) 52 37 Loan: deposit ratio 92% 92% Net interest margin3 4.89% 4.56% Notable items £m £m Gain on disposal of Barclays' share of Visa Europe Limited 464 - Gains on US Lehman acquisition assets - 496 Provisions for UK customer redress - (218) Provisions for ongoing investigations and litigation including Foreign Exchange - (839) Gain on valuation of a component of the defined retirement benefit liability - 133 Total notable items 464 (428) Excluding notable items, the Barclays International return on average tangible equity was 10.5% (Q315 YTD: 11.5%). 1 As at 30 September 2016 loans and advances included £206.0bn (June 2016: £204.4bn) of loans and advances to customers (including settlement balances of £37.0bn (June 2016: £39.9bn) and cash collateral of £31.1bn (June 2016: £29.8bn)), and £27.8bn (June 2016: £26.2bn) of loans and advances to banks (including settlement balances of £5.7bn (June 2016: £6.2bn) and cash collateral of £7.3bn (June 2016: £5.3bn)). Loans and advances to banks and customers in respect of Consumer, Cards and Payments were £36.8bn (June 2016: £35.4bn). 2 As at 30 September 2016 customer deposits included settlement balances of £34.8bn (June 2016: £38.9bn) and cash collateral of £19.5bn (June 2016: £18.7bn). 3 Excludes Investment Banking related balances. Analysis of Barclays International Corporate and Investment Bank Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Analysis of total income Credit 924 629 47 Equities 1,380 1,593 (13) Macro 1,799 1,726 4 Markets 4,103 3,948 4 Banking fees 1,747 1,629 7 Corporate lending 892 1,049 (15) Transactional banking 1,256 1,248 1 Banking 3,895 3,926 (1) Other 4 479 (99) Total income 8,002 8,353 (4) Credit impairment charges and other provisions (170) (116) (47) Total operating expenses (5,337) (5,967) 11 Profit before tax 2,495 2,270 10 As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Risk weighted assets 182.5 178.4 167.3 Nine months ended Nine months ended Performance measures 30.09.16 30.09.15 Return on average tangible equity 8.7% 8.0% Average allocated tangible equity (£bn) 21.6 21.9 Excluding notable items, the CIB return on average tangible equity was 8.7% (Q315 YTD: 10.3%). Consumer, Cards and Payments Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Total income 3,401 2,426 40 Credit impairment charges and other provisions (759) (503) (51) Total operating expenses (1,326) (1,214) (9) Profit before tax 1,343 746 80 As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Loans and advances to banks and customers at amortised cost 36.8 35.4 32.1 Customer deposits 48.3 46.9 41.8 Risk weighted assets 32.1 30.9 27.5 Performance measures Return on average tangible equity 38.3% 21.8% Average allocated tangible equity (£bn) 3.6 3.0 Excluding notable items, the Consumer, Cards and Payments return on average tangible equity was 21.3% (Q315 YTD: 19.9%). Head Office Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Total income 112 624 (82) Credit impairment charges and other provisions - - Net operating income 112 624 (82) Operating expenses (150) (207) 28 Litigation and conduct (26) (50) 48 Total operating expenses (176) (257) 32 Other net expenses (31) (91) 66 (Loss)/profit before tax (95) 276 Attributable (loss)/profit (113) 148 As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Total assets1 73.3 87.7 59.4 Risk weighted assets1 47.5 43.2 39.7 Nine months ended Nine months ended 30.09.16 30.09.15 Performance measures £m £m Average allocated tangible equity (£bn) 6.3 2.0 Notable items £m £m Own credit (80) 605 Provisions for ongoing investigations and litigation including Foreign Exchange - (29) Losses on sale relating to the Spanish, Portuguese and Italian businesses - (97) Total notable items (80) 479 1 Includes Africa Banking assets held for sale of £61.1bn (June 2016: £56.0bn) and risk weighted assets of £39.9bn (June 2016: £36.1bn). Barclays Non-Core Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Net interest income 214 444 (52) Net trading income (1,241) (308) Net fee, commission and other income 477 799 (40) Total income (550) 935 Net claims and benefits incurred under insurance contracts (195) (255) 24 Total income net of insurance claims (745) 680 Credit impairment charges and other provisions (75) (102) 26 Net operating (expenses)/income (820) 578 Operating expenses (1,168) (1,403) 17 Litigation and conduct (195) (411) 53 Total operating expenses (1,363) (1,814) 25 Other net income/(expenses) 185 (267) Loss before tax (1,998) (1,503) (33) Attributable loss (1,418) (1,210) (17) As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Loans and advances to banks and customers at amortised cost1 58.7 68.5 51.8 Derivative financial instrument assets 253.2 262.8 213.7 Derivative financial instrument liabilities 243.0 253.4 202.1 Reverse repurchase agreements and other similar secured lending 0.1 0.1 3.1 Financial assets designate at fair value 15.5 15.4 21.4 Total assets 359.8 379.1 325.8 Customer deposits2 16.0 17.4 20.9 Risk weighted assets 43.9 46.7 54.3 Nine months ended Nine months ended Performance measures 30.09.16 30.09.15 Average allocated tangible equity (£bn) 8.2 11.3 Period end allocated tangible equity (£bn) 7.2 10.2 Loan loss rate (bps) 16 21 Notable items £m £m Provisions for UK customer redress - (65) Provisions for ongoing investigations and litigation including Foreign Exchange - (201) Losses on sale relating to the Spanish and Portuguese businesses - (222) Total notable items - (488) Analysis of income net of insurance claims £m £m % Change Businesses 558 910 (39) Securities and loans (799) (155) Derivatives (504) (75) Total income net of insurance claims (745) 680 1 As at 30 September 2016 loans and advances included £43.5bn (June 2016: £52.4bn) of loans and advances to customers (including settlement balances of £0.3bn (June 2016: £0.1bn) and cash collateral of £20.9bn (June 2016: £28.8bn) and loans and advances to banks of £15.2bn (June 2016: £16.1bn) (including settlement balances of £0.1bn (June 2016: £0.1bn) and cash collateral of £14.2bn (June 2016: £15.0bn)). 2 As at 30 September 2016 customer deposits included settlement balances of £0.2bn (June 2016: £0.1bn) and cash collateral of £14.8bn (June 2016: £14.5bn). Discontinued Operation On 1 March 2016, Barclays announced its intention to sell down the Group's interest in BAGL. This sell down is intended to be to a level which will permit deconsolidation from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required. On 5 May 2016 Barclays executed the first tranche of the sell down of the Group's interest in BAGL with the sale of 12.2% of BAGL's issued share capital. Following completion of the sale, Barclays' holding represents 50.1% of BAGL's issued share capital. The Africa Banking business meets the requirements for presentation as a discontinued operation. As such, these results have been presented as two lines on the face of the Group income statement, representing the profit after tax and non-controlling interest in respect of the discontinued operation. Were the fair value of BAGL, based on its quoted share price, less estimated costs to sell, to fall below the carrying amount of the net assets of BAGL including goodwill on acquisition, a resulting impairment to Barclays' stake in BAGL would also be recognised through these lines. Africa Banking Nine months ended Nine months ended 30.09.16 30.09.15 Income statement information £m £m % Change Net interest income 1,543 1,482 4 Net fee, commission and other income 1,273 1,239 3 Total income 2,816 2,721 3 Net claims and benefits incurred under insurance contracts (137) (121) (13) Total income net of insurance claims 2,679 2,600 3 Credit impairment charges and other provisions (340) (260) (31) Net operating income 2,339 2,340 - Total operating expenses (1,618) (1,590) (2) Other net income 4 4 - Profit before tax 725 754 (4) Profit after tax 520 525 (1) Attributable profit 240 277 (13) As at As at As at 30.09.16 30.06.16 31.12.15 Balance sheet information £bn £bn £bn Total assets1 61.1 56.0 47.9 Risk weighted assets1 39.9 36.1 31.7 1 Africa Banking assets held for sale and RWAs are reported in Head Office within Core. Quarterly Results Summary Barclays Group Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Total income net of insurance claims 5,446 5,972 5,041 4,448 5,481 6,461 5,650 4,097 Credit impairment charges and other provisions (789) (488) (443) (554) (429) (393) (386) (495) Net operating income 4,657 5,484 4,598 3,894 5,052 6,068 5,264 3,602 Operating expenses (3,581) (3,425) (3,747) (3,547) (3,552) (3,557) (3,067) (3,696) UK bank levy - - - (426) - - - (418) Litigation and conduct (741) (447) (78) (1,722) (699) (927) (1,039) (1,089) Total operating expenses (4,322) (3,872) (3,825) (5,695) (4,251) (4,484) (4,106) (5,203) Other net income/(expenses) 502 (342) 20 (274) (182) (39) (101) (82) Profit/(loss) before tax 837 1,270 793 (2,075) 619 1,545 1,057 (1,683) Tax (charge)/credit (328) (467) (248) (164) (133) (324) (528) 134 Profit/(loss) after tax in respect of continuing operations 509 803 545 (2,239) 486 1,221 529 (1,549) Profit after tax in respect of discontinued operation 209 145 166 101 167 162 196 168 Attributable to: Ordinary equity holders of the parent 414 677 433 (2,422) 417 1,146 465 (1,679) Other equity holders 110 104 104 107 79 79 80 80 Non-controlling interests 194 167 174 177 157 158 180 218 Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Total assets 1,324.0 1,351.3 1,248.9 1,120.0 1,236.5 1,196.7 1,416.4 1,357.9 Risk weighted assets 373.4 366.3 363.0 358.4 381.9 376.7 395.9 401.9 Leverage exposure 1,185.1 1,155.4 1,082.0 1,027.8 1,140.7 1,139.3 1,254.7 1,233.4 Performance measures Return on average tangible shareholders' equity 3.6% 5.8% 3.8% (20.1%) 3.6% 9.8% 4.0% (13.8%) Average tangible shareholders' equity (£bn) 49.4 48.3 48.3 47.8 47.6 47.2 48.1 48.3 Cost: income ratio 79% 65% 76% 128% 78% 69% 73% 127% Loan loss rate (bps) 66 41 40 53 37 35 32 45 Basic earnings/(loss) per share 2.6p 4.2p 2.7p (14.4p) 2.6p 7.0p 2.9p (10.2p) Notable items £m £m £m £m £m £m £m £m Own credit (264) 292 (109) (175) 195 282 128 (62) Gain on disposal of Barclays' share of Visa Europe Limited - 615 - - - - - - Gains on US Lehman acquisition assets - - - - - 496 - - Revision of ESHLA valuation methodology - - - - - - - (935) Provisions for UK customer redress (600) (400) - (1,450) (290) (850) (182) (200) Provisions for ongoing investigations and litigation including Foreign Exchange - - - (167) (270) - (800) (750) Gain on valuation of a component of the defined retirement benefit liability - - - - - - 429 - Impairment of goodwill and other assets relating to businesses being disposed - - - (96) - - - - Losses on sale relating to the Spanish, Portuguese and Italian businesses - - - (261) (201) - (118) (82) Total notable items (864) 507 (109) (2,149) (566) (72) (543) (2,029) Excluding notable items, the Q316 Group return on average tangible equity was 10.1% (Q315: 6.7%) and the Group basic earnings per share was 7.4p (Q315: 4.8p). Barclays Core Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Total income net of insurance claims 5,605 6,316 5,283 4,516 5,265 6,219 5,428 4,791 Credit impairment charges and other provisions (769) (462) (414) (522) (388) (373) (345) (481) Net operating income 4,836 5,854 4,869 3,994 4,877 5,846 5,083 4,310 Operating expenses (3,270) (3,057) (3,258) (2,992) (3,094) (3,061) (2,618) (3,076) UK bank levy - - - (338) - - - (316) Litigation and conduct (639) (420) (12) (1,634) (419) (819) (1,015) (1,004) Total operating expenses (3,909) (3,477) (3,270) (4,964) (3,513) (3,880) (3,633) (4,396) Other net income/(expenses) 4 (18) 9 (5) 13 14 (83) 6 Profit/(loss) before tax 931 2,359 1,608 (975) 1,377 1,980 1,367 (80) Tax charge (522) (696) (485) (92) (299) (474) (614) (172) Profit/(loss) after tax 409 1,663 1,123 (1,067) 1,078 1,506 753 (253) Non-controlling interests (57) (80) (84) (81) (54) (64) (68) (100) Other equity holders (95) (89) (89) (92) (63) (61) (65) (64) Attributable profit/(loss) 257 1,494 950 (1,240) 961 1,381 620 (417) Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Total assets 964.3 972.2 883.6 794.2 862.0 830.5 919.4 855.5 Risk weighted assets 329.5 319.6 312.2 304.1 316.3 308.1 318.0 312.8 Performance measures Return on average tangible equity 2.7% 15.0% 9.9% (12.8%) 10.4% 15.5% 7.1% (4.8%) Average tangible equity (£bn) 41.8 40.4 39.3 38.1 37.5 35.9 35.6 34.0 Cost: income ratio 70% 55% 62% 110% 67% 62% 67% 92% Loan loss rate (bps) 74 45 42 57 39 38 35 52 Basic earnings/(loss) per share 1.7p 9.0p 5.8p (7.3p) 5.8p 8.4p 3.8p (2.5p) Notable items £m £m £m £m £m £m £m £m Own credit (264) 292 (109) (175) 195 282 128 (62) Gain on disposal of Barclays' share of Visa Europe Limited - 615 - - - - - - Gains on US Lehman acquisition assets - - - - - 496 - - Provisions for UK customer redress (600) (400) - (1,392) (290) (800) (167) (199) Provisions for ongoing investigations and litigation including Foreign Exchange - - - (167) (69) - (800) (750) Gain on valuation of a component of the defined retirement benefit liability - - - - - - 429 - Losses on sale relating to the Spanish, Portuguese and Italian businesses - - - (15) - - (97) - Total notable items (864) 507 (109) (1,749) (164) (22) (507) (1,011) Excluding notable items, the Q316 Core return on average tangible equity was 10.4% (Q315: 11.3%) and the Core basic earnings per share was 6.5p (Q315: 6.4p). Barclays Non-Core Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Businesses 181 181 196 229 314 292 304 361 Securities and loans (34) (363) (402) (195) (87) - (68) (1,021) Derivatives (306) (162) (36) (102) (12) (49) (14) (35) Total income net of insurance claims (159) (344) (242) (68) 215 243 222 (695) Credit impairment charges and other provisions (20) (26) (29) (32) (41) (20) (41) (13) Net operating (expenses)/income (179) (370) (271) (100) 174 223 181 (708) Operating expenses (311) (368) (489) (555) (458) (496) (449) (618) UK bank levy - - - (88) - - - (102) Litigation and conduct (102) (27) (66) (89) (279) (108) (24) (85) Total operating expenses (413) (395) (555) (732) (737) (604) (473) (805) Other net income/(expenses) 498 (324) 11 (268) (195) (54) (18) (90) Loss before tax (94) (1,089) (815) (1,100) (758) (435) (310) (1,603) Tax credit/(charge) 194 229 237 (72) 166 150 86 306 Profit/(loss) after tax 100 (860) (578) (1,172) (592) (285) (224) (1,297) Non-controlling interests (13) (12) (10) (19) (21) (21) (20) (33) Other equity holders (15) (15) (15) (17) (15) (18) (14) (17) Attributable profit/(loss) 72 (887) (603) (1,208) (628) (324) (258) (1,347) Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to banks and customers at amortised cost 58.7 68.5 55.4 51.8 57.1 60.4 73.1 70.7 Derivative financial instrument assets 253.2 262.8 249.7 213.7 243.3 223.9 305.6 288.9 Derivative financial instrument liabilities 243.0 253.4 239.1 202.1 235.0 216.7 299.6 280.6 Reverse repurchase agreements and other similar secured lending 0.1 0.1 0.7 3.1 8.5 16.7 43.7 50.7 Financial assets designated at fair value 15.5 15.4 23.4 21.4 22.8 22.1 25.0 25.5 Total assets 359.8 379.1 365.4 325.8 374.5 366.2 497.0 502.4 Customer deposits 16.0 17.4 19.3 20.9 25.8 27.9 29.9 30.8 Risk weighted assets 43.9 46.7 50.9 54.3 65.6 68.6 77.9 89.1 Performance measures Average allocated tangible equity (£bn) 7.6 7.9 9.0 9.7 10.2 11.3 12.4 14.3 Period end allocated tangible equity (£bn) 7.2 7.8 8.5 8.5 10.2 10.1 11.7 13.1 Loan loss rate (bps) 13 14 21 25 27 13 17 10 Basic earnings/(loss) per share contribution 0.5p (5.2p) (3.6p) (7.2p) (3.7p) (1.9p) (1.5p) (8.2p) Notable items £m £m £m £m £m £m £m £m Revision of ESHLA valuation methodology - - - - - - - (935) Provisions for UK customer redress - - - (58) - (50) (15) (1) Provisions for ongoing investigations and litigation including Foreign Exchange - - - - (201) - - - Impairment of goodwill and other assets relating to businesses being disposed - - - (96) - - - - Losses on sale relating to the Spanish, Portuguese and Italian business - - - (246) (201) - (21) (82) Total notable items - - - (400) (402) (50) (36) (1,018) Excluding notable items, the Non-Core basic earnings/(loss) per share was 0.5p (Q315: (2.1p)). Quarterly Core Results by Business Barclays UK Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Total income 1,943 1,943 1,803 1,834 1,874 1,804 1,831 1,882 Credit impairment charges and other provisions (350) (220) (146) (219) (154) (166) (167) (264) Net operating income 1,593 1,723 1,657 1,615 1,720 1,638 1,664 1,618 Operating expenses (904) (947) (952) (920) (925) (970) (649) (1,041) UK bank levy - - - (77) - - - (59) Litigation and conduct (614) (399) (1) (1,466) (76) (801) (168) (211) Total operating expenses (1,518) (1,346) (953) (2,463) (1,001) (1,771) (817) (1,311) Other net (expenses)/income - (1) - 1 1 1 (3) (3) Profit/(loss) before tax 75 376 704 (847) 720 (132) 844 304 Attributable (loss)/profit (163) 141 467 (1,078) 541 (174) 664 208 Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to customers at amortised cost 166.6 166.0 166.2 166.1 166.7 166.1 166.0 165.3 Total assets 209.1 204.6 201.7 202.5 204.1 202.2 199.6 198.0 Customer deposits 185.5 181.7 179.1 176.8 173.4 171.6 168.7 168.3 Risk weighted assets 67.4 67.1 69.7 69.5 71.0 71.7 72.3 69.3 Performance measures Return on average tangible equity (7.1%) 6.6% 20.5% (46.5%) 23.3% (7.3%) 28.3% 9.3% Average allocated tangible equity (£bn) 8.7 9.0 9.3 9.2 9.3 9.4 9.4 9.2 Cost: income ratio 78% 69% 53% 134% 53% 98% 45% 70% Loan loss rate (bps) 82 52 34 51 36 40 40 62 Notable items £m £m £m £m £m £m £m £m Gain on disposal of Barclays' share of Visa Europe Limited - 151 - - - - - - Provisions for UK customer redress (600) (400) - (1,391) (73) (800) (167) (199) Gain on valuation of a component of the defined retirement benefit liability - - - - - - 296 - Total notable items (600) (249) - (1,391) (73) (800) 129 (199) Excluding notable items, the Q316 Barclays UK return on average tangible equity was 21.1% (Q315: 25.8%). Analysis of Barclays UK Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Analysis of total income £m £m £m £m £m £m £m £m Personal Banking 970 1,068 919 945 938 905 927 955 Barclaycard Consumer UK 561 463 491 505 552 503 505 518 Wealth, Entrepreneurs & Business Banking 412 412 393 384 384 396 399 409 Total income 1,943 1,943 1,803 1,834 1,874 1,804 1,831 1,882 Analysis of credit impairment charges and other provisions Personal Banking (47) (44) (42) (39) (36) (50) (69) (57) Barclaycard Consumer UK (291) (169) (105) (176) (111) (106) (95) (185) Wealth, Entrepreneurs & Business Banking (12) (7) 1 (4) (7) (10) (3) (22) Total credit impairment charges and other provisions (350) (220) (146) (219) (154) (166) (167) (264) Analysis of loans and advances to customers at amortised cost £bn £bn £bn £bn £bn £bn £bn £bn Personal Banking 135.3 134.7 134.7 134.0 134.5 134.4 134.3 133.8 Barclaycard Consumer UK 16.2 16.2 16.0 16.2 15.9 15.8 15.7 15.8 Wealth, Entrepreneurs & Business Banking 15.1 15.1 15.5 15.9 16.3 15.9 16.0 15.7 Total loans and advances to customers at amortised cost 166.6 166.0 166.2 166.1 166.7 166.1 166.0 165.3 Analysis of customer deposits Personal Banking 137.2 134.8 132.9 131.0 128.4 126.7 123.4 124.5 Barclaycard Consumer UK - - - - - - - - Wealth, Entrepreneurs & Business Banking 48.3 46.9 46.2 45.8 45.0 44.9 45.3 43.8 Total customer deposits 185.5 181.7 179.1 176.8 173.4 171.6 168.7 168.3 Barclays International Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Total income 3,851 4,039 3,513 2,968 3,223 4,102 3,454 2,945 Credit impairment charges and other provisions (420) (240) (269) (303) (235) (206) (178) (217) Net operating income 3,431 3,799 3,244 2,665 2,988 3,896 3,276 2,728 Operating expenses (2,337) (2,074) (2,221) (2,007) (2,059) (2,027) (1,936) (2,014) UK bank levy - - - (253) - - - (248) Litigation and conduct (17) (10) (4) (151) (302) (12) (845) (786) Total operating expenses (2,354) (2,084) (2,225) (2,411) (2,361) (2,039) (2,781) (3,048) Other net income 8 11 8 8 9 13 15 7 Profit/(loss) before tax 1,085 1,726 1,027 262 636 1,870 510 (313) Attributable profit/(loss) 623 1,171 575 (24) 422 1,376 (16) (673) Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to banks and customers at amortised cost 233.7 230.6 215.9 184.1 220.3 210.5 224.7 193.6 Trading portfolio assets 73.8 68.1 64.3 61.9 72.8 75.3 92.7 87.3 Derivative financial instrument assets 155.6 181.4 150.1 111.5 133.7 116.0 172.8 149.6 Derivative financial instrument liabilities 160.5 187.5 155.4 119.0 142.0 124.8 182.3 157.3 Reverse repurchase agreements and other similar secured lending 17.3 19.7 19.1 24.7 68.0 57.4 57.1 62.9 Financial assets designated at fair value 72.0 68.3 59.6 46.8 5.6 5.6 5.2 5.7 Total assets 681.9 679.9 618.4 532.2 596.1 566.1 656.2 596.5 Customer deposits 224.1 226.5 213.1 185.6 207.0 197.7 206.2 188.2 Risk weighted assets 214.6 209.3 202.2 194.8 204.0 195.4 202.6 201.7 Performance measures Return on average tangible equity 10.0% 19.2% 9.5% (0.2%) 7.0% 22.5% (0.1%) (10.4%) Average allocated tangible equity (£bn) 25.7 24.8 25.1 24.9 24.7 24.7 25.3 25.6 Cost: income ratio 61% 52% 63% 81% 73% 50% 81% 103% Loan loss rate (bps) 71 41 50 65 42 38 32 44 Notable items £m £m £m £m £m £m £m £m Gain on disposal of Barclays' share of Visa Europe Limited - 464 - - - - - - Gains on US Lehman acquisition assets - - - - - 496 - - Provisions for UK customer redress - - - - (218) - - - Provisions for ongoing investigations and litigation including Foreign Exchange - - - (145) (39) - (800) (750) Gain on valuation of a component of the defined retirement benefit liability - - - - - - 133 - Total notable items - 464 - (145) (257) 496 (667) (750) Excluding notable items, the Q316 Barclays International return on average tangible equity was 10.0% (Q315: 9.6%). Analysis of Barclays International Corporate and Investment Bank Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Analysis of total income Credit 333 269 322 195 191 218 220 117 Equities 461 406 513 319 416 588 589 418 Macro 614 612 573 382 487 582 657 436 Markets 1,408 1,287 1,408 896 1,094 1,388 1,466 971 Banking fees 644 622 481 458 501 580 548 529 Corporate lending 284 312 296 312 377 387 285 334 Transactional banking 458 390 408 415 419 416 413 404 Banking 1,386 1,324 1,185 1,185 1,297 1,383 1,246 1,267 Other 1 - 3 16 (17) 495 1 (4) Total income 2,795 2,611 2,596 2,097 2,374 3,266 2,713 2,234 Credit impairment (charges)/ releases and other provisions (38) (37) (95) (83) (75) (42) 1 (26) Total operating expenses (1,872) (1,665) (1,800) (1,962) (1,940) (1,605) (2,422) (2,614) Profit/(loss) before tax 885 909 701 52 358 1,620 292 (408) Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Risk weighted assets 182.5 178.4 172.6 167.3 177.4 170.0 177.1 175.2 Performance measures Return on average tangible equity 9.2% 9.5% 7.3% (2.5%) 4.5% 22.3% (2.5%) (12.8%) Average allocated tangible equity (£bn) 21.9 21.3 21.6 21.8 21.7 21.7 22.3 22.5 Excluding notable items, the Q316 CIB return on average tangible equity was 9.2% (Q315: 7.5%). Consumer, Cards and Payments Income statement information £m £m £m £m £m £m £m £m Total income 1,056 1,428 917 871 849 836 741 711 Credit impairment charges and other provisions (382) (203) (174) (219) (160) (165) (179) (190) Total operating expenses (482) (419) (425) (449) (421) (434) (359) (434) Profit before tax 200 817 326 210 278 250 218 93 Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Loans and advances to banks and customers at amortised cost 36.8 35.4 32.9 32.1 30.6 29.6 29.8 29.7 Customer deposits 48.3 46.9 44.2 41.8 39.8 38.4 40.1 37.9 Risk weighted assets 32.1 30.9 29.6 27.5 26.6 25.4 25.5 26.6 Performance measures Return on average tangible equity 14.8% 77.9% 23.4% 15.3% 24.7% 23.4% 17.5% 6.6% Average allocated tangible equity (£bn) 3.7 3.5 3.4 3.2 3.1 3.0 3.0 3.1 Excluding notable items, the Q316 Consumer, Cards and Payments return on average tangible equity was 14.8% (Q315: 24.7%). Head Office Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Total income (189) 334 (33) (285) 169 312 142 (36) Credit impairment releases/(charges) and other provisions 1 (2) 1 - 1 (1) - - Net operating (expenses)/income (188) 332 (32) (285) 170 311 142 (36) Operating expenses (29) (36) (85) (64) (110) (64) (34) (21) UK bank levy - - - (8) - - - (9) Litigation and conduct (8) (11) (7) (17) (42) (6) (1) (7) Total operating expenses (37) (47) (92) (89) (152) (70) (35) (37) Other net (expenses)/income (4) (28) 1 (14) 2 1 (95) 3 (Loss)/profit before tax (229) 257 (123) (388) 20 242 12 (70) Attributable (loss)/profit (203) 182 (92) (140) (1) 180 (28) 47 Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Total assets1 73.3 87.7 63.4 59.4 61.8 62.2 63.6 61.0 Risk weighted assets1 47.5 43.2 40.3 39.7 41.3 41.0 43.1 41.8 Performance measures Average allocated tangible equity (£bn) 7.4 6.6 5.0 3.9 3.4 1.8 0.9 (0.8) Notable items £m £m £m £m £m £m £m £m Own credit (264) 292 (109) (175) 195 282 128 (62) Provisions for ongoing investigations and litigation including Foreign Exchange - - - (23) (29) - - - Provisions for UK customer redress - - - - - - - - Losses on sale relating to the Spanish, Portuguese and Italian businesses - - - (15) - - (97) - Total notable items (264) 292 (109) (213) 166 282 31 (62) 1 Includes Africa Banking assets held for sale and RWAs. Discontinued Quarterly Results Africa Banking Q316 Q216 Q116 Q415 Q315 Q215 Q115 Q414 Income statement information £m £m £m £m £m £m £m £m Total income net of insurance claims 982 879 818 814 822 870 908 925 Credit impairment charges and other provisions (96) (133) (111) (93) (66) (103) (91) (79) Net operating income 886 746 707 721 756 767 817 846 Operating expenses (598) (543) (477) (501) (515) (536) (539) (585) UK bank levy - - - (50) - - - (44) Litigation and conduct - - - - - - - (1) Total operating expenses (598) (543) (477) (551) (515) (536) (539) (630) Other net income 2 1 1 3 1 1 2 2 Profit before tax 290 204 231 173 242 232 280 218 Profit after tax 209 145 166 101 167 162 196 168 Attributable profit 85 70 86 25 85 88 104 85 Balance sheet information £bn £bn £bn £bn £bn £bn £bn £bn Total assets1 61.1 56.0 52.7 47.9 50.2 52.2 55.9 53.7 Risk weighted assets1 39.9 36.1 33.9 31.7 33.8 34.4 37.3 36.7 1 Africa Banking assets held for sale and RWAs are reported in Head Office within Core. Performance Management Margins and balances Nine months ended 30.09.16 Nine months ended 30.09.15 Net interest income Average customer assets Net interest margin Net interest income Average customer assets Net interest margin £m £m % £m £m % Barclays UK 4,546 167,306 3.63 4,464 167,663 3.56 Barclays International1 3,113 85,110 4.89 2,760 80,956 4.56 Total Barclays UK and Barclays International 7,659 252,416 4.05 7,224 248,619 3.88 Other2 355 658 Total net interest income3 8,014 7,882 1 Excludes Investment Banking related balances. 2 Other includes Investment Banking related balances, Head Office and Barclays Non-Core. 3 Group NII included net structural hedge contributions of £1.0bn (Q315 YTD: £1.0bn). Quarterly analysis for Barclays UK and Barclays International Three months ended 30.09.16 Net interest income Average customer assets Net interest margin £m £m % Barclays UK 1,569 167,713 3.72 Barclays International1 1,139 88,443 5.12 Total Barclays UK and Barclays International 2,708 256,156 4.21 Three months ended 30.06.16 Barclays UK 1,476 166,691 3.56 Barclays International1 1,000 84,628 4.75 Total Barclays UK and Barclays International 2,476 251,319 3.96 Three months ended 31.03.16 Barclays UK 1,501 166,727 3.62 Barclays International1 974 85,010 4.61 Total Barclays UK and Barclays International 2,475 251,737 3.95 Three months ended 31.12.15 Barclays UK 1,509 167,405 3.58 Barclays International1 965 83,342 4.59 Total Barclays UK and Barclays International 2,474 250,747 3.91 Three months ended 30.09.15 Barclays UK 1,499 167,936 3.54 Barclays International1 947 91,311 4.62 Total Barclays UK and Barclays International 2,446 249,247 3.89 1 Excludes Investment Banking related balances. Credit Risk Analysis of retail and wholesale loans and advances and impairment As at 30.09.16 Gross loans and advances Impairment allowance Loans and advances net of impairment Credit risk loans CRLs % of gross loans and advances Loan impairment charges1 Loan loss rates £m £m £m £m % £m bps Barclays UK 155,559 1,594 153,965 2,218 1.4 698 60 Barclays International 30,328 1,289 29,039 1,115 3.7 753 332 Head Office - - - - - - - Barclays Core 185,887 2,883 183,004 3,333 1.8 1,451 104 Barclays Non-Core 11,180 433 10,747 944 8.4 62 74 Total Group retail 197,067 3,316 193,751 4,277 2.2 1,513 103 Barclays UK 15,358 274 15,084 649 4.2 18 16 Barclays International 205,356 654 204,702 1,386 0.7 174 11 Head Office 7,682 - 7,682 - - - - Barclays Core 228,396 928 227,468 2,035 0.9 192 11 Barclays Non-Core 48,256 281 47,975 427 0.9 9 2 Total Group wholesale 276,652 1,209 275,443 2,462 0.9 201 10 Group total 473,719 4,525 469,194 6,739 1.4 1,714 48 Traded loans 3,208 n/a 3,208 Loans and advances designated at fair value 11,979 n/a 11,979 Loans and advances held at fair value 15,187 n/a 15,187 Total loans and advances 488,906 4,525 484,381 As at 31.12.15 Barclays UK 153,539 1,556 151,983 2,238 1.5 682 44 Barclays International 26,041 896 25,145 863 3.3 714 274 Head Office2 - - - - - - - Barclays Core 179,580 2,452 177,128 3,101 1.7 1,396 78 Barclays Non-Core 12,588 465 12,123 936 7.4 139 110 Total Group retail 192,168 2,917 189,251 4,037 2.1 1,535 80 Barclays UK 16,400 312 16,088 636 3.9 24 15 Barclays International 159,776 617 159,159 1,331 0.8 201 13 Head Office2 5,767 - 5,767 - - - - Barclays Core 181,943 929 181,014 1,967 1.1 225 12 Barclays Non-Core 39,979 336 39,643 441 1.1 (16) (4) Total Group wholesale 221,922 1,265 220,657 2,408 1.1 209 9 Group total 414,090 4,182 409,908 6,445 1.6 1,744 42 Traded loans 2,474 n/a 2,474 Loans and advances designated at fair value 17,913 n/a 17,913 Loans and advances held at fair value 20,387 n/a 20,387 Total loans and advances 434,477 4,182 430,295 1 Excluding impairment charges on available for sale investments and reverse repurchase agreements. Q316 impairment charges represent 9 months charge, whereas December 2015 impairment charges represent 12 months charge. 2 Excludes Africa Banking discontinued operation. Condensed Consolidated Financial Statements Consolidated summary income statement Nine months ended Nine months ended 30.09.16 30.09.15 £m £m Total income net of insurance claims 16,459 17,592 Credit impairment charges and other provisions (1,720) (1,208) Net operating income 14,739 16,384 Operating expenses (10,753) (10,176) Litigation and conduct (1,266) (2,665) Operating expenses (12,019) (12,841) Other net income/(expenses) 180 (322) Profit before tax 2,900 3,221 Tax charge (1,043) (985) Profit after tax in respect of continuing operations 1,857 2,236 Profit after tax in respect of discontinued operation 520 525 Profit after tax 2,377 2,761 Attributable to: Ordinary equity holders of the parent 1,524 2,028 Other equity holders 318 238 Total equity holders 1,842 2,266 Non-controlling interests in respect of continuing operations 255 247 Non-controlling interests in respect of discontinued operation 280 248 Profit after tax 2,377 2,761 Earnings per share Basic earnings per ordinary share1 9.6p 12.4p 1 The profit after tax attributable to other equity holders of £318m (Q315 YTD: £238m) is offset by a tax credit recorded in reserves of £89m (Q315 YTD: £48m). The net amount of £229m (Q315 YTD: £190m), along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share and return on average tangible shareholders' equity. Consolidated summary balance sheet As at As at 30.09.16 31.12.15 Assets £m £m Cash and balances at central banks 91,984 49,711 Items in the course of collection from other banks 1,126 1,011 Trading portfolio assets 80,522 77,348 Financial assets designated at fair value 94,052 76,830 Derivative financial instruments 409,858 327,709 Financial investments 68,756 90,267 Loans and advances to banks 49,758 41,349 Loans and advances to customers 419,436 399,217 Reverse repurchase agreements and other similar secured lending 17,444 28,187 Goodwill and intangible assets 7,517 8,222 Non current assets classified as held for sale 72,301 7,364 Other assets 11,282 12,797 Total assets 1,324,036 1,120,012 Liabilities Deposits from banks 64,515 47,080 Items in the course of collection due to other banks 863 1,013 Customer accounts 438,510 418,242 Repurchase agreements and other similar secured borrowing 23,098 25,035 Trading portfolio liabilities 35,524 33,967 Financial liabilities designated at fair value 111,579 91,745 Derivative financial instruments 404,421 324,252 Debt securities in issue1 70,297 69,150 Subordinated liabilities 23,605 21,467 Non current liabilities classified as held for sale 66,917 5,997 Other liabilities 14,587 16,200 Total liabilities 1,253,916 1,054,148 Equity Called up share capital and share premium 21,812 21,586 Other reserves 6,341 1,898 Retained earnings 29,334 31,021 Shareholders' equity attributable to ordinary shareholders of the parent 57,487 54,505 Other equity instruments 6,442 5,305 Total equity excluding non-controlling interests 63,929 59,810 Non-controlling interests 6,191 6,054 Total equity 70,120 65,864 Total liabilities and equity 1,324,036 1,120,012 1 Debt securities in issue include covered bonds of £12,482m (December 2015: £12,300m). Consolidated statement of changes in equity Called up share capital and share premium Other equity instruments Other reserves Retained earnings Total Non-controlling interests Total equity Nine months ended 30.09.16 £m £m £m £m £m £m £m Balance as at 1 January 2016 21,586 5,305 1,898 31,021 59,810 6,054 65,864 Profit after tax - 318 - 1,284 1,602 255 1,857 Other comprehensive profit after tax for the period - - 3,787 (1,743) 2,044 3 2,047 Total comprehensive income net of tax from continuing operations - 318 3,787 (459) 3,646 258 3,904 Total comprehensive income net of tax from discontinued operation - - 646 240 886 933 1,819 Total comprehensive income for the period - 318 4,433 (219) 4,532 1,191 5,723 Issue of shares 226 - - 373 599 - 599 Issue and exchange of equity instruments - 1,132 - - 1,132 - 1,132 Dividends - - - (757) (757) (464) (1,221) Coupons paid on other equity instruments - (318) - 89 (229) - (229) Redemption and buy back of capital instruments1 - - - (417) (417) (1,170) (1,587) Treasury shares - - 10 (404) (394) - (394) Net equity impact of partial BAGL disposal - - - (349) (349) 601 252 Other movements - 5 - (3) 2 (21) (19) Balance as at 30 September 2016 21,812 6,442 6,341 29,334 63,929 6,191 70,120 Three months ended 30.09.16 Balance as at 1 July 2016 21,763 5,314 5,695 30,082 62,854 6,566 69,420 Profit after tax - 110 - 330 440 69 509 Other comprehensive profit after tax for the period - - 563 (981) (418) 1 (417) Total comprehensive income net of tax from continuing operations - 110 563 (651) 22 70 92 Total comprehensive income net of tax from discontinued operation - - 68 84 152 371 523 Total comprehensive income for the period - 110 631 (567) 174 441 615 Issue of shares 49 - - 147 196 - 196 Issue and exchange of equity instruments - 1,132 - - 1,132 - 1,132 Dividends - - - (169) (169) (184) (353) Coupons paid on other equity instruments - (110) - 31 (79) - (79) Redemption and buy back of capital instruments1 - - - (164) (164) (620) (784) Treasury shares - - 15 (20) (5) - (5) Net equity impact of partial BAGL disposal - - - - - - - Other movements - (4) - (6) (10) (12) (22) Balance as at 30 September 2016 21,812 6,442 6,341 29,334 63,929 6,191 70,120 As at As at As at 30.09.16 30.06.16 31.12.15 Other reserves £m £m £m Currency translation reserve 2,414 1,699 (623) Available for sale reserve 17 7 317 Cash flow hedging reserve 2,957 3,051 1,261 Other2 953 938 943 Total 6,341 5,695 1,898 1 Redemption and buy back of capital instruments is made up of £408m relating to the redemption of preference shares and £9m relating to the buy back of Upper Tier 2 notes. 2 As at 30 September 2016, there was a credit balance of £1,011m (June 2016: £1,011m credit) in other reserves relating to the excess repurchase price paid over nominal of redeemed ordinary and preference shares issued by the group and a debit balance of £58m (June 2016: £73m debit) in other reserves relating to treasury shares. Barclays PLC Parent Company Balance Sheet Barclays PLC Parent Company Summary Balance Sheet As at As at 30.09.16 31.12.15 Assets £m £m Investments in subsidiary 36,553 35,303 Loans and advances to subsidiary 19,087 7,990 Derivative financial instrument 267 210 Other assets 61 133 Total assets 55,968 43,636 Liabilities Deposits from banks 516 494 Subordinated liabilities 3,680 1,766 Debt securities in issue 15,407 6,224 Other liabilities 17 - Total liabilities 19,620 8,484 Equity Called up share capital 4,236 4,201 Share premium account 17,576 17,385 Other equity instruments 6,453 5,321 Capital redemption reserve 394 394 Retained earnings 7,689 7,851 Total shareholders' equity 36,348 35,152 Total liabilities and shareholders' equity 55,968 43,636 Investment in subsidiary The investment in subsidiary of £36,553m (December 2015: £35,303m) represents investments made into Barclays Bank PLC, including £6,453m (December 2015: £5,321m) of Additional Tier 1 (AT1) securities. The increase of £1,250m was mainly driven by a $1.5bn AT1 issuance during the third quarter. Loans and advances to subsidiary, subordinated liabilities and debt securities in issue For the nine months ended September 2016, Barclays PLC issued $2.1bn of Fixed Rate Subordinated Notes included within the subordinated liabilities balance of £3,680m (2015: £1,766m), $6.7bn of Fixed Rate Senior Notes, Yen 20bn of Fixed Rate Senior Notes, €1.7bn Fixed and Floating Rate Senior Notes, £1.3bn of Fixed Rate Senior Notes and AUD 0.2bn of Fixed Rate Senior Notes included within the debt securities in issue balance of £15,407m (2015: £6,224m). The proceeds raised through the subordinated liabilities and debt securities issuances were used to invest in Barclays Bank PLC in each case with a ranking corresponding to the notes issued by Barclays PLC and included within the loans and advances to subsidiary balance of £19,087m (2015: £7,990m). Management of internal investments, loans and advances Barclays PLC retains the discretion to manage the nature of its internal investments in subsidiaries according to their regulatory and business needs. As we implement our structural reform programme, Barclays PLC will invest capital and funding to Barclays Bank PLC and other Group subsidiaries such as the Group service company, the US IHC and the UK ring-fenced bank Capital CRD IV capital Barclays' current regulatory requirement is to meet a fully loaded CRD IV CET1 ratio comprising the required 4.5% minimum CET1 ratio requirement and, phased in from 2016, a Combined Buffer Requirement currently expected to comprise of a Capital Conservation Buffer (CCB) of 2.5% and a Globally Systemically Important Institution (G-SII) buffer of 2%. In addition, Barclays' Pillar 2A requirement as per the PRA's Individual Capital Guidance (ICG) for 2016 based on a point in time assessment is 3.9% of which 56% will need to be met in CET1 form, equating to approximately 2.2% of RWAs. The Pillar 2A requirement is subject to at least annual review, and all capital, RWA and leverage calculations reflect Barclays' interpretation of the current rules. In addition, a Counter-Cyclical Capital Buffer (CCCB) is required. On 22 September 2016 the Financial Policy Committee reaffirmed that it expects to maintain a CCCB of 0% on UK exposures until at least June 2017. Other national authorities also determine the appropriate CCCBs that should be applied to exposures in their jurisdiction. During 2016, CCCBs started to apply for Barclays' exposures to other jurisdictions; however based on current exposures these are not material. As at 30 September 2016, Barclays' CET1 ratio was 11.6% which exceeds the 2016 transitional minimum requirement of 7.8% including the minimum 4.5% CET1 ratio requirement, 2.2% of Pillar 2A, a 0.625% CCB buffer, a 0.5% G-SII buffer and a 0% CCCB. Capital ratios As at As at As at 30.09.16 30.06.16 31.12.15 Fully loaded CET11,2 11.6% 11.6% 11.4% PRA Transitional Tier 13,4 14.8% 14.6% 14.7% PRA Transitional Total Capital3,4 18.8% 18.7% 18.6% Capital resources £m £m £m Shareholders' equity (excluding non-controlling interests) per the balance sheet 63,929 62,854 59,810 Less: other equity instruments (recognised as AT1 capital) (6,442) (5,314) (5,305) Adjustment to retained earnings for foreseeable dividends (276) (297) (631) Minority interests (amount allowed in consolidated CET1) 1,695 1,501 950 Other regulatory adjustments and deductions: Additional value adjustments (PVA) (1,742) (2,092) (1,602) Goodwill and intangible assets (8,847) (8,552) (8,234) Deferred tax assets that rely on future profitability excluding temporary differences (623) (670) (855) Fair value reserves related to gains or losses on cash flow hedges (2,952) (3,046) (1,231) Excess of expected losses over impairment (1,272) (1,475) (1,365) Gains or losses on liabilities at fair value resulting from own credit 72 (177) 127 Defined-benefit pension fund assets (40) (204) (689) Direct and indirect holdings by an institution of own CET1 instruments (50) (50) (57) Deferred tax assets arising from temporary differences (amount above 10% threshold) (49) - - Other regulatory adjustments (226) (121) (177) Fully loaded CET1 capital 43,177 42,357 40,741 Additional Tier 1 (AT1) capital Capital instruments and related share premium accounts 6,442 5,314 5,305 Qualifying AT1 capital (including minority interests) issued by subsidiaries 5,658 5,885 6,718 Other regulatory adjustments and deductions (130) (130) (130) Transitional AT1 capital5 11,970 11,069 11,893 PRA Transitional Tier 1 capital 55,147 53,426 52,634 Tier 2 (T2) capital Capital instruments and related share premium accounts 3,631 2,890 1,757 Qualifying T2 capital (including minority interests) issued by subsidiaries 11,664 12,366 12,389 Other regulatory adjustments and deductions (254) (254) (253) PRA Transitional total regulatory capital 70,188 68,428 66,527 1 The transitional regulatory adjustments to CET1 capital are no longer applicable resulting in CET1 capital on a fully loaded basis being equal to that on a transitional basis. 2 The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays' Tier 2 Contingent Capital Notes was 12.8% based on £47.8bn of transitional CRD IV CET1 capital and £373bn of RWAs. 3 The PRA transitional capital is based on the PRA Rulebook and accompanying supervisory statements. 4 As at 30 September 2016, Barclays' fully loaded Tier 1 capital was £49,930m, and the fully loaded Tier 1 ratio was 13.4%. Fully loaded total regulatory capital was £66,185m and the fully loaded total capital ratio was 17.7%. The fully loaded Tier 1 capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV. 5 Of the £12bn transitional AT1 capital, fully loaded AT1 capital used for the leverage ratio comprises the £6.4bn capital instruments and related share premium accounts, £0.4bn qualifying minority interests and £0.1bn capital deductions. It excludes legacy Tier 1 capital instruments issued by subsidiaries that are subject to grandfathering. Movement in CET1 capital Three months ended Nine months ended 30.09.16 30.09.16 £m £m Opening CET1 capital 42,357 40,741 Profit for the period attributable to equity holders 524 1,842 Own credit 249 (55) Dividends paid and foreseen (228) (631) Increase in retained regulatory capital generated from earnings 545 1,156 Net impact of share schemes 191 205 Available for sale reserves 10 (300) Currency translation reserves 715 3,037 Other reserves (153) (781) Increase in other qualifying reserves 763 2,161 Retirement benefit reserve (997) (1,756) Defined-benefit pension fund asset deduction 164 649 Net impact of pensions (833) (1,107) Minority interests 194 745 Additional value adjustments (PVA) 350 (140) Goodwill and intangible assets (295) (613) Deferred tax assets that rely on future profitability excluding those arising from temporary differences 47 232 Excess of expected loss over impairment 203 93 Direct and indirect holdings by an institution of own CET1 instruments - 7 Deferred tax assets arising from temporary differences (amount above 10% threshold) (49) (49) Other regulatory adjustments (105) (49) Increase in regulatory capital due to adjustments and deductions 345 226 Closing CET1 capital 43,177 43,177 · The CET1 ratio improved to 11.6% (December 2015: 11.4%) primarily driven by an increase in CET1 capital of £2.4bn to £43.2bn as a result of strong profits of £1.8bn generated in the year, after absorbing the impact of notable items. Overall, regulatory capital generated from earnings increased CET1 capital by £1.2bn. Other significant movements in the year were: - A £2.2bn increase in other qualifying reserves including a £3bn increase in the currency translation reserve as USD, EUR and ZAR strengthened against GBP; partially offset by a £0.4bn decrease as a result of preference share redemptions and a £0.3bn decrease in AFS reserve - A £1.1bn decrease, net of tax, as a result of movements relating to pensions. The UKRF, which is the Group's main pension scheme, moved from a £0.8bn surplus to a £1.1bn deficit. The movement was driven by an increase in the liability values, mainly due to a decrease in the discount rate to 2.31%pa (2015: 3.82%pa). The increase in liabilities was partially offset by an increase in asset values driven by higher asset performance relative to the discount rate and the removal of the capital deduction for the UKRF assets in December 2015 · Transitional AT1 capital remained flat in the period as the redemption of £1.2bn of end point non qualifying preference shares and tier one notes was offset by the issuance of $1.5bn of end point qualifying AT1 capital instruments Risk Weighted Assets Risk weighted assets (RWAs) by risk type and business Credit risk Counterparty credit risk Market risk Operational risk Total RWAs Std IRB Std IRB Settle-ment Risk CVA Std IMA As at 30.09.16 £m £m £m £m £m £m £m £m £m £m Barclays UK 5,886 49,183 9 - - 39 - - 12,293 67,410 Barclays International 51,498 82,020 14,201 13,945 82 4,931 11,485 8,900 27,538 214,600 Head Office1 8,527 25,174 43 1,088 - 844 580 2,560 8,685 47,501 Barclays Core 65,911 156,377 14,253 15,033 82 5,814 12,065 11,460 48,516 329,511 Barclays Non-Core 7,009 11,037 1,740 7,435 2 4,287 695 3,526 8,144 43,875 Barclays Group 72,920 167,414 15,993 22,468 84 10,101 12,760 14,986 56,660 373,386 As at 30.06.16 Barclays UK 5,795 48,656 10 - - 83 - - 12,574 67,118 Barclays International 50,607 82,219 11,754 14,401 57 4,078 9,923 9,008 27,257 209,304 Head Office1 8,038 22,954 33 935 - 524 414 2,279 8,003 43,180 Barclays Core 64,440 153,829 11,797 15,336 57 4,685 10,337 11,287 47,834 319,602 Barclays Non-Core 7,335 10,813 1,911 9,797 1 3,163 782 4,038 8,826 46,666 Barclays Group 71,775 164,642 13,708 25,133 58 7,848 11,119 15,325 56,660 366,268 As at 31.12.15 Barclays UK 6,562 50,763 26 - - - - - 12,174 69,525 Barclays International 45,892 77,275 10,463 11,055 516 3,406 8,373 10,196 27,657 194,833 Head Office1 8,291 20,156 54 538 8 382 399 1,903 8,003 39,734 Barclays Core 60,745 148,194 10,543 11,593 524 3,788 8,772 12,099 47,834 304,092 Barclays Non-Core 8,704 12,797 1,653 9,430 1 7,480 1,714 3,679 8,826 54,284 Barclays Group 69,449 160,991 12,196 21,023 525 11,268 10,486 15,778 56,660 358,376 1 Includes Africa Banking discontinued operation. Movement analysis of risk weighted assets Credit risk Counterparty credit risk Market risk Operational risk Total RWAs £bn £bn £bn £bn £bn As at 01.01.16 230.4 33.7 37.6 56.7 358.4 Book size 1.1 6.5 0.5 - 8.1 Acquisitions and disposals (4.7) - - - (4.7) Book quality (0.4) - 0.6 - 0.2 Model updates (2.9) (2.0) (0.3) - (5.2) Methodology and policy (0.2) 0.2 (0.5) - (0.5) Foreign exchange movements1 17.0 0.1 - - 17.1 As at 30.09.16 240.3 38.5 37.9 56.7 373.4 1 Foreign exchange movement does not include FX for modelled counterparty risk or modelled market risk. RWAs increased £15.0bn to £373.4bn, due to: · Book size increased RWAs by £8.1bn primarily driven by increased trading activity as well as an increase in the fair value of derivative exposures in Barclays International and Non-Core · Acquisitions and disposals decreased RWAs by £4.7bn primarily driven by rundown in Non-Core, including the sale of Portuguese and Italian businesses · Model updates decreased RWAs by £5.2bn primarily driven by model changes in Barclays UK following approval from the PRA · Foreign exchange movements increased RWAs by £17.1bn due to the appreciation of ZAR, USD and EUR against GBP Leverage Leverage ratio and exposures Effective 1 January 2016, Barclays is required to disclose a leverage ratio and an average leverage ratio applicable to the Group: · The leverage ratio is consistent with the December 2015 method of calculation and has been included in the table below. The calculation uses the end point CRR definition of Tier 1 capital for the numerator and the CRR definition of leverage exposure. The current expected minimum fully loaded requirement is 3%, but this could be impacted by the Basel Consultation on the Leverage Framework · The average leverage ratio as outlined by the PRA Supervisory Statement SS45/15 and the updated PRA rulebook is calculated as the capital measure divided by the exposure measure, where the capital and exposure measure is based on the average of the last day of each month in the quarter. The expected end point minimum requirement is 3.7% comprising of the 3% minimum requirement, a fully phased in G-SII additional leverage ratio buffer (G-SII ALRB) and a countercyclical leverage ratio buffer (CCLB) At 30 September 2016, Barclays' leverage ratio was 4.2% (December 2015: 4.5%) which was consistent with the average leverage ratio of 4.2%, which exceeds the transitional minimum requirement for Barclays of 3.175%, comprising of the 3% minimum requirement and a phased in G-SII ALRB. This already exceeds the expected end point minimum requirement of 3.7%. In August 2016, the PRA implemented the Financial Policy Committee's recommendation to allow firms to exclude claims on the central bank from the calculation of the leverage exposure measure, as long these are matched by deposits denominated in the same currency. The revised definition will flow through to firms' obligations with regards to the minimum leverage ratio requirement, the countercyclical leverage ratio buffer and the additional leverage ratio buffer. Our reported leverage ratio and average leverage ratio disclosed below is unaffected by this announcement as firm's are required to continue to disclose on the existing rules. The impact of the FPC's recommendations would have been an improvement to the headroom of c.20bps for the reported leverage ratio and c.10bps for the average leverage ratio. As at 30.09.16 As at 30.06.16 As at 31.12.15 Leverage exposure £bn £bn £bn Accounting assets Derivative financial instruments 410 445 328 Cash collateral 74 79 62 Reverse repurchase agreements and other similar secured lending 17 20 28 Financial assets designated at fair value1 94 89 77 Loans and advances and other assets 729 718 625 Total IFRS assets 1,324 1,351 1,120 Regulatory consolidation adjustments (8) (10) (10) Derivatives adjustments Derivatives netting (373) (402) (293) Adjustments to cash collateral (59) (64) (46) Net written credit protection 20 19 15 Potential Future Exposure (PFE) on derivatives 143 142 129 Total derivatives adjustments (269) (305) (195) Securities financing transactions (SFTs) adjustments 36 18 16 Regulatory deductions and other adjustments (16) (16) (14) Weighted off-balance sheet commitments 118 117 111 Total leverage exposure 1,185 1,155 1,028 Fully loaded CET 1 capital 43.2 42.4 40.7 Fully loaded AT1 capital 6.8 5.6 5.4 Fully loaded Tier 1 capital 49.9 47.9 46.2 Leverage ratio 4.2% 4.2% 4.5% 1 Included within financial assets designated at fair value are reverse repurchase agreements designated at fair value of £78bn (December 2015: £50bn). The leverage ratio decreased to 4.2% (December 2015: 4.5%) primarily driven by an increase in the leverage exposure of £157bn to £1,185bn partially offset by a £3.8bn increase in fully loaded Tier 1 capital to £49.9bn (December 2015: £46.2bn): · Loans and advances and other assets increased by £104bn to £729bn. The increase was primarily driven by a £42bn increase in cash and balances at central banks due to an increase in the cash element of the Group liquidity pool, a £25bn increase in settlement balances following increased client activity, lending growth of £20bn within Barclays International and Barclays UK, and a £14bn increase in Africa banking assets held for sale reflecting the appreciation of ZAR against GBP · Reverse repurchase agreements increased £17bn to £95bn, primarily due to an increase in matched book trading · SFT adjustments increased by £20bn to £36bn, primarily as a result of a change in treatment of securities pre-positioned for use against undrawn central bank lending facilities · PFE on derivatives increased by £14bn to £143bn primarily driven by the appreciation of major currencies against GBP, partially offset by compression activity, sale of positions and maturity of trades · Weighted off balance sheet commitments increased by £7bn to £118bn primarily driven the appreciation of major currencies against GBP The average leverage exposure measure for Q316 was £1,195bn resulting in an average leverage ratio of 4.2%. The CET1 capital held against the 0.175% transitional G-SII ALRB was £2.1bn. There is no current impact for the CCLB for the group. Shareholder Information Results timetable1 Date 2016 Full Year Results and Audited Annual Report 23 February 2017 % Change3 Exchange rates2 30.09.16 30.06.16 30.09.15 30.06.16 30.09.15 Period end - USD/GBP 1.30 1.34 1.51 (3) (14) YTD Average - USD/GBP 1.39 1.43 1.53 (3) (9) 3 Month average - USD/GBP 1.31 1.43 1.55 (8) (15) Period end - EUR/GBP 1.16 1.21 1.36 (4) (15) YTD average - EUR/GBP 1.25 1.29 1.37 (3) (9) 3 Month average - EUR/GBP 1.18 1.27 1.39 (7) (15) Period end - ZAR/GBP 17.83 19.63 20.97 (9) (15) YTD average - ZAR/GBP 20.92 22.17 18.81 (6) 11 3 Month average - ZAR/GBP 18.47 21.51 20.08 (14) (8) Share price data 30.09.16 30.06.16 30.09.15 Barclays PLC (p) 167.80 138.60 244.15 Barclays PLC number of shares (m) 16,943 16,913 16,784 Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR) 151.00 144.08 170.20 Barclays Africa Group Limited (formerly Absa Group Limited) number of shares (m) 848 848 848 For further information please contact Investor relations Media relations Kathryn McLeland +44 (0) 20 7116 4943 Thomas Hoskin +44 (0) 20 7116 4755 More information on Barclays can be found on our website: home.barclays Registered office 1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839 Registrar Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom. Tel: 0371 384 20554 from the UK or +44 (0) 121 415 7004 from overseas. 1 Note that these announcement dates are provisional and subject to change). 2 The average rates shown above are derived from daily spot rates during the year. 3 The change is the impact to GBP reported information. 4 Lines open 8.30am to 5.30pm UK time, Monday to Friday, excluding public holidays in England and Wales. Notes The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2016 to the corresponding nine months of 2015 and balance sheet analysis as at 30 September 2016 with comparatives relating to 30 June Comparatives have been restated to reflect the implementation of the Group business reorganisation. These restatements were detailed in our announcement on 14 April 2016, accessible at home.barclays/results. Notable items are considered to be significant items impacting comparability of performance and have been called out for each of the business segments. Notable items include: the impact of own credit in total income; the gain on disposal of Barclays' share of Visa Europe Limited in total income; gains on US Lehman acquisition assets in total income; revision of the Education, Social Housing, and Local Authority (ESHLA) valuation methodology in total income; gain on valuation of a component of the defined retirement benefit liability in operating expenses; impairment of goodwill and other assets relating to businesses being disposed in operating expenses, provisions for UK customer redress in litigation and conduct; provisions for ongoing investigations and litigation including Foreign Exchange in litigation and conduct; and losses on sale relating to the Spanish, Portuguese and Italian businesses in other net income/(expenses). References to underlying performance exclude the impact of notable items. 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 26 October 2016, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2015, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006. These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished with the SEC, copies of the Form 6-K will also be available from the Barclays Investor Relations website 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. 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 the Group's future financial position, income growth, assets, impairment charges, provisions, notable items, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with the strategic cost programme and the Group Strategy Update, rundown of assets and businesses within Barclays Non-Core, 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 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, 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, future levels of notable items, 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 results of the 23 June 2016 referendum in the United Kingdom and the disruption that may result in the UK and globally from the withdrawal of the United Kingdom from the European Union; the implementation of the strategic cost programme; 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 2015), which are 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. This information is provided by RNS The company news service from the London Stock Exchange END QRTUNVKRNAARUAA