Barclays PLC — Earnings Release 2023

Oct 24, 2023

National Storage Mechanism | Additional information RNS Number : 0262R Barclays PLC 24 October 2023 Barclays PLC Q3 2023 Results Announcement 30 September 2023 Notes This document contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended). The terms Barclays and Group refer to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the nine months ended 30 September 2023 to the corresponding nine months of 2022 and balance sheet analysis as at 30 September 2023 with comparatives relating to 31 December 2022 and 30 September 2022. The abbreviations '��m' and '��bn' represent millions and thousands of millions of Pounds Sterling respectively; the abbreviations '$m' and '$bn' represent millions and thousands of millions of US Dollars respectively; and the abbreviations '���m' and '���bn' represent millions and thousands of millions of Euros respectively. There are a number of key judgement areas, for example impairment calculations, which are based on models and which are subject to ongoing adjustment and modifications. Reported numbers reflect best estimates and judgements at the given point in time. Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the results glossary, which can be accessed at home.barclays/investor-relations. The information in this announcement, which was approved by the Board of Directors on 23 October 2023, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2022, which contained an unmodified audit report under Section 495 of the Companies Act 2006 (which did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in accordance with Section 441 of the Companies Act 2006. These results will be furnished on Form 6-K with the US Securities and Exchange Commission (SEC) as soon as practicable following their publication. Once furnished with the SEC, a copy of the Form 6-K will be available from the SEC's website at www.sec.gov. Barclays is a frequent issuer in the debt capital markets and regularly meets with investors via formal road-shows and other ad hoc meetings. Consistent with its usual practice, Barclays expects that from time to time over the coming quarter it will meet with investors globally to discuss these results and other matters relating to the Group. Non-IFRS performance measures Barclays' management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays' management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Refer to the appendix on pages 40 to 46 for further information and calculations of non-IFRS performance measures included throughout this document, and the most directly comparable IFRS measures. Forward-looking statements This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by directors, officers and employees of the Group (including during management presentations) in connection with this document. Examples of forward-looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, income levels, costs, assets and liabilities, impairment charges, provisions, capital, leverage and other regulatory ratios, capital distributions (including dividend policy and share buybacks), return on tangible equity, projected levels of growth in banking and financial markets, industry trends, any commitments and targets (including environmental, social and governance (ESG) commitments and targets), business strategy, plans and objectives for future operations and other statements that are not historical or current facts. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements speak only as at the date on which they are made. Forward-looking statements may be affected by a number of factors, including, without limitation: changes in legislation, regulation and the interpretation thereof, changes in IFRS and other accounting standards, including practices with regard to the interpretation and application thereof and emerging and developing ESG reporting standards; the outcome of current and future legal proceedings and regulatory investigations; the policies and actions of governmental and regulatory authorities; the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively; environmental, social and geopolitical risks and incidents and similar events beyond the Group's control; the impact of competition; capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions, including inflation; volatility in credit and capital markets; market related risks such as changes in interest rates and foreign exchange rates; higher or lower asset valuations; changes in credit ratings of any entity within the Group or any securities issued by it; changes in counterparty risk; changes in consumer behaviour; the direct and indirect consequences of the Russia-Ukraine war on European and global macroeconomic conditions, political stability and financial markets; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the UK's exit from the European Union (EU), the effects of the EU-UK Trade and Cooperation Agreement and any disruption that may subsequently result in the UK and globally; the risk of cyber-attacks, information or security breaches or technology failures on the Group's reputation, business or operations; the Group's ability to access funding; and the success of acquisitions, disposals and other strategic transactions. A number of these factors are beyond the Group's control. As a result, the Group's actual financial position, results, financial and non-financial metrics or performance measures or its ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in Barclays PLC's filings with the US Securities and Exchange Commission (SEC) (including, without limitation, Barclays PLC's Annual Report on Form 20-F for the financial year ended 31 December 2022 and Interim Results Announcement for the six months ended 30 June 2023 filed on Form 6-K), which are available on the SEC's website at www.sec.gov. Subject to Barclays PLC's obligations under the applicable laws and regulations of any relevant jurisdiction (including, without limitation, the UK and the US) in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Performance Highlights Barclays delivered return on tangible equity (RoTE) of 11.0% in Q323 and 12.5% in Q323 YTD C. S. Venkatakrishnan, Group Chief Executive, commented "We delivered an 11.0% RoTE in Q3, against a mixed market backdrop, as we continued to manage credit well, remained disciplined on costs and maintained a strong capital position, with a Common Equity Tier 1 (CET1) ratio of 14.0%. We see further opportunities to enhance returns for shareholders through cost efficiencies and disciplined capital allocation across the Group. We will provide an Investor Update at FY23 results which will include setting out our capital allocation priorities, as well as revised financial targets" ��� Q323 Group RoTE of 11.0% and Q323 YTD of 12.5%. Barclays UK Q323 RoTE of 21.0% and Q323 YTD of 20.6% ��� Prudent risk management with Q323 YTD loan loss rate (LLR) of 43bps ��� Strong balance sheet with CET1 ratio of 14.0% ��� c.7.5p total distributions per share announced at H123: dividend of 2.7p now paid, and completed the share buyback of ��750m Key financial metrics: Income Profit before tax Attributable profit Cost income ratio LLR RoTE EPS TNAV per share CET1 ratio Q323 ��6.3bn ��1.9bn ��1.3bn 63% 42bps 11.0% 8.3p 316p 14.0% Q323 YTD ��19.8bn ��6.4bn ��4.4bn 61% 43bps 12.5% 28.2p Q323 Performance highlights: ��� Group RoTE of 11.0% with profit before tax of ��1.9bn (Q322: ��2.0bn). Excluding the impacts from the Over-issuance of Securities1,2 in the prior year: - Group income down 2% year-on-year to ��6.3bn: - Barclays UK income decreased 2% to ��1.9bn, primarily driven by the impact from the transfer of Wealth Management & Investments (WM&I) to Consumer, Cards and Payments (CC&P). Excluding the transfer, Barclays UK income was up 1%3 driven by net interest income growth from higher rates, including continued structural hedge income, partially offset by product dynamics in deposits and mortgages - Corporate and Investment Bank (CIB) income decreased 6% to ��3.1bn, reflecting lower client activity in both Global Markets (against a record FICC performance in Q3224) and Investment Banking fees, more than offsetting higher Corporate income from higher rates and the non-repeat of fair value losses on leverage finance lending in the prior year - CC&P income increased 9% to ��1.4bn reflecting higher balances in US cards and the benefit of the transfer of WM&I from Barclays UK - Group total operating expenses decreased 4% year-on-year to ��3.9bn as inflation, business growth and investments were more than offset by efficiency savings and lower litigation and conduct charges ��� Credit impairment charges were ��0.4bn, with an LLR of 42bps ��� CET1 ratio of 14.0%, with risk weighted assets (RWAs) of ��341.9bn and tangible net asset value (TNAV) per share of 316p 1 Denotes the Over-issuance of Securities under Barclays Bank PLC's US shelf registration statements on Form F-3 filed with the SEC in 2018 and 2019. See page 5 for a reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year. 2 Q322 impacts from the Over-Issuance of Securities: ��0.5bn income reduction and ��0.5bn reduction in litigation and conduct charges. 3 The income impact of the WM&I transfer was c.��60m in Q323. 4 Q322 was a record third quarter performance for FICC within Global Markets. Period covering Q114-Q323. Pre 2014 data was not restated following re-segmentation in Q116. Q323 YTD Performance highlights: ��� Group RoTE was 12.5% (Q322 YTD: 10.9%) with profit before tax of ��6.4bn (Q322 YTD: ��5.7bn). ��� Excluding the impact of the Over-issuance of Securities in the prior year1: - Group income of ��19.8bn, up 5% year-on-year - Group total operating expenses were ��12.0bn, up 2% year-on-year. Cost: income ratio of 61% as the Group delivered positive cost: income jaws of 3% ��� Credit impairment charges were ��1.3bn with an LLR of 43bps, with delinquencies in US cards in line with pre-pandemic experience ��� On a statutory basis: - Group income was ��19.8bn, up 3% year-on-year - Group total operating expenses were ��12.0bn, a decrease of 6% year-on-year Group Targets and Outlook: ��� Costs: targeting a cost: income ratio percentage in the low 60s in 2023, investing for growth whilst progressing towards the Group's medium-term target of below 60%. Separately, the Group is evaluating actions to reduce structural costs to help drive future returns, which may result in material additional charges in Q423 ��� Returns: targeting a RoTE of greater than 10% in 2023, excluding any such structural costs actions ��� Impairment: expect an LLR of 50-60bps through the cycle ��� Barclays UK Net Interest Margin (NIM): now expected to be in the range of 3.05% - 3.10% in 2023. Guidance is sensitive to the level and mix of deposit balances and further changes in expectations for interest rates ��� Capital: expect to continue to operate within the CET1 ratio target range of 13-14% ��� Capital returns: capital distribution policy incorporates a progressive ordinary dividend, supplemented with share buybacks as appropriate 1 Q322 YTD impacts from the Over-Issuance of Securities: ��0.3bn income gain and ��1.0bn litigation and conduct charges. Barclays Group results Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 ��m ��m % Change ��m ��m % Change Barclays UK 5,795 5,289 10 1,873 1,916 (2) Corporate and Investment Bank 10,220 10,792 (5) 3,082 2,821 9 Consumer, Cards and Payments 3,944 3,213 23 1,360 1,244 9 Barclays International 14,164 14,005 1 4,442 4,065 9 Head Office (179) (139) (29) (57) (30) (90) Total income 19,780 19,155 3 6,258 5,951 5 Operating costs (11,979) (11,209) (7) (3,949) (3,939) Litigation and conduct (32) (1,518) 98 - 339 Total operating expenses (12,011) (12,727) 6 (3,949) (3,600) (10) Other net income/(expenses) 7 (4) 9 (1) Profit before impairment 7,776 6,424 21 2,318 2,350 (1) Credit impairment charges (1,329) (722) (84) (433) (381) (14) Profit before tax 6,447 5,702 13 1,885 1,969 (4) Tax charge (1,257) (1,072) (17) (343) (249) (38) Profit after tax 5,190 4,630 12 1,542 1,720 (10) Non-controlling interests (39) (23) (70) (9) (2) Other equity instrument holders (766) (620) (24) (259) (206) (26) Attributable profit 4,385 3,987 10 1,274 1,512 (16) Performance measures Return on average tangible shareholders' equity 12.5% 10.9% 11.0% 12.5% Average tangible shareholders' equity (��bn) 47.0 48.8 46.5 48.6 Cost: income ratio 61% 66% 63% 60% Loan loss rate (bps) 43 23 42 36 Basic earnings per share 28.2p 24.2p 8.3p 9.4p Basic weighted average number of shares (m) 15,564 16,503 (6) 15,405 16,148 (5) Period end number of shares (m) 15,239 15,888 (4) 15,239 15,888 (4) As at 30.09.23 As at 31.12.22 As at 30.09.22 Balance sheet and capital management1 ��bn ��bn ��bn Loans and advances at amortised cost 405.4 398.8 413.7 Loans and advances at amortised cost impairment coverage ratio 1.4% 1.4% 1.4% Total assets 1,591.7 1,513.7 1,726.9 Deposits at amortised cost 561.3 545.8 574.4 Tangible net asset value per share 316p 295p 286p Common equity tier 1 ratio 14.0% 13.9% 13.8% Common equity tier 1 capital 48.0 46.9 48.6 Risk weighted assets 341.9 336.5 350.8 UK leverage ratio 5.0% 5.3% 5.0% UK leverage exposure 1,202.4 1,130.0 1,232.1 Funding and liquidity Group liquidity pool (��bn) 335.0 318.0 325.8 Liquidity coverage ratio2 159% 156% 156% Net stable funding ratio3 138% 137% Loan: deposit ratio 72% 73% 72% 1 Refer to pages 32 to 36 for further information on how capital, RWAs and leverage are calculated. 2 The Liquidity Coverage Ratio is now shown on an average basis, based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency. 3 Represents average of the last four spot quarter end positions. Reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year Three months ended 30.09.23 30.09.22 Statutory Statutory Impact of the Over-issuance of Securities Excluding impact of the Over-issuance of Securities ��m ��m ��m ��m % Change Barclays UK 1,873 1,916 - 1,916 (2) Corporate and Investment Bank 3,082 2,821 (466) 3,287 (6) Consumer, Cards and Payments 1,360 1,244 - 1,244 9 Barclays International 4,442 4,065 (466) 4,531 (2) Head Office (57) (30) - (30) (90) Total income 6,258 5,951 (466) 6,417 (2) Operating costs (3,949) (3,939) - (3,939) Litigation and conduct - 339 503 (164) Total operating expenses (3,949) (3,600) 503 (4,103) 4 Other net income/(expenses) 9 (1) - (1) Profit before impairment 2,318 2,350 37 2,313 Credit impairment charges (433) (381) - (381) (14) Profit before tax 1,885 1,969 37 1,932 (2) Attributable profit 1,274 1,512 29 1,483 (14) Average tangible shareholders' equity (��bn) 46.5 48.6 48.6 Return on average tangible shareholders' equity 11.0% 12.5% 12.2% Nine months ended 30.09.23 30.09.22 Statutory Statutory Impact of the Over-issuance of Securities Excluding impact of the Over-issuance of Securities ��m ��m ��m ��m % Change Barclays UK 5,795 5,289 - 5,289 10 Corporate and Investment Bank 10,220 10,792 292 10,500 (3) Consumer, Cards and Payments 3,944 3,213 - 3,213 23 Barclays International 14,164 14,005 292 13,713 3 Head Office (179) (139) - (139) (29) Total income 19,780 19,155 292 18,863 5 Operating costs (11,979) (11,209) - (11,209) (7) Litigation and conduct (32) (1,518) (966) (552) 94 Total operating expenses (12,011) (12,727) (966) (11,761) (2) Other net income/(expenses) 7 (4) - (4) Profit before impairment 7,776 6,424 (674) 7,098 10 Credit impairment charges (1,329) (722) - (722) (84) Profit before tax 6,447 5,702 (674) 6,376 1 Attributable profit 4,385 3,987 (552) 4,539 (3) Average tangible shareholders' equity (��bn) 47.0 48.8 48.8 Return on average tangible shareholders' equity 12.5% 10.9% 12.4% Group Finance Director's Review Q323 YTD Group performance ��� Barclays delivered a profit before tax of ��6,447m (Q322 YTD: ��5,702m), RoTE of 12.5% (Q322 YTD: 10.9%) and earnings per share (EPS) of 28.2p (Q322 YTD: 24.2p) ��� The Group has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits and adversely impacted credit impairment charges and total operating expenses ��� Group income increased 3% to ��19,780m primarily driven by the net benefit from the higher interest rate environment, including continued structural hedge income, and higher balances in US cards, partially offset by the non repeat of the prior year income from hedging arrangements related to the Over-issuance of Securities and lower income in Global Markets and Investment Banking fees ��� Group total operating expenses decreased to ��12,011m (Q322 YTD: ��12,727m) - Group operating expenses excluding litigation and conduct charges increased to ��11,979m (Q322 YTD: ��11,209m) reflecting the impact of business growth, including the Gap portfolio acquisition in US cards and the Kensington Mortgage Company (KMC) acquisition in Barclays UK, as well as investments in resilience and controls. The impact of Group inflation was broadly offset by efficiency savings. The Group incurred ��119m of structural cost actions (Q322 YTD: ��78m), primarily related to the ongoing Barclays UK transformation programme - Litigation and conduct charges decreased to ��32m (Q322 YTD: ��1,518m). The prior year charges included ��966m of costs related to the Over-issuance of Securities, ��282m of customer remediation costs relating to legacy loan portfolios in CC&P and ��165m related to the Devices Settlements1 ��� Credit impairment charges were ��1,329m (Q322 YTD: ��722m), with delinquencies in US cards in line with pre-pandemic experience. Total coverage ratio remains strong at 1.4% (December 2022: 1.4%) ��� The effective tax rate (ETR) was 19.5% (Q322 YTD: 18.8%). The prior year included tax benefits arising in the year and in respect of prior years, which were partially offset by the impact of the downward re-measurement of the Group's UK deferred tax assets as a result of the UK banking surcharge rate being reduced from 8% to 3% ��� Attributable profit was ��4,385m (Q322 YTD: ��3,987m) ��� Total assets increased to ��1,591.7bn (December 2022: ��1,513.7bn) driven by increased trading activity within CIB since December 2022. The Group liquidity pool was further strengthened by deposit growth ��� TNAV per share increased to 316p (December 2022: 295p) as EPS of 28.2p and the impact of share buybacks announced at FY22 and H123 results were partially offset by dividends paid in the period and net negative reserve movements Barclays UK Barclays UK delivered a RoTE of 20.6% supported by the higher interest rate environment and the continued investment in our transformation into a next-generation, digitised consumer bank. The challenging environment has persisted with customer behaviour driving a reduction in the NIM outlook and balances. ��� Profit before tax increased 16% to ��2,300m with a RoTE of 20.6% (Q322 YTD: 18.7%) ��� Total income increased 10% to ��5,795m. Net interest income increased 13% to ��4,856m with a NIM of 3.15% (Q322 YTD: 2.78%), as higher interest rates and associated structural hedge benefit outweighed mortgage margin pressure, lower deposit volumes and the search for yield in savings, with these product dynamics trends increasing in Q323. Net fee, commission and other income decreased 6% to ��939m including the impact of the transfer of WM&I to CC&P - Personal Banking income increased 11% to ��3,662m, driven by higher interest rates, partially offset by mortgage margin compression and lower current accounts deposit volumes consistent with wider market trends and cost of living pressures - Barclaycard Consumer UK income decreased 12% to ��722m as higher customer spend volumes were more than offset by lower interest earning lending balances following repayments and ongoing prudent risk management - Business Banking income increased 22% to ��1,411m driven by higher interest rates, partially offset by lower government scheme lending as repayments continue and lower deposit volumes in line with wider market trends ��� Total operating expenses increased 2% to ��3,228m from the impact of inflation, partially offset by the transfer of WM&I to CC&P. Ongoing efficiency savings continue to be reinvested, including in our transformation programme to support further improvements to the cost: income ratio over time ��� Credit impairment charges increased to ��267m (Q322 YTD: ��129m), driven by updated macroeconomic scenarios, reflecting year-to-date improvement in GDP and unemployment outlook against a backdrop of higher interest rates and a weaker House Price Index (HPI). UK cards 30 and 90 day arrears remained low at 0.9% (Q322: 1.0%) and 0.2% (Q322: 0.3%) respectively. The UK cards total coverage ratio was 6.3% (December 2022: 7.6%) 1 Refers to the settlements with the SEC and Commodity Futures Trading Commission (CFTC) in connection with their investigations of the use of unauthorised devices for business communications. Barclays UK (continued) ��� Loans and advances to customers at amortised cost were broadly stable at ��204.9bn (December 2022: ��205.1bn), primarily reflecting the acquisition of KMC and mortgage lending in the first half of the year, which more than offset repayment of government scheme lending in Business Banking ��� Customer deposits at amortised cost decreased 6% to ��243.2bn. Primarily driven by reduced current account balances in Personal and Business Banking, reflecting broader market trends. The loan: deposit ratio increased to 92% (December 2022: 87%) - Average balances quarter-on-quarter contributed to a larger net interest income deposit effect than the period end balances ��� RWAs were stable at ��73.2bn (December 2022: ��73.1bn) including a reduction due to a capital Loss Given Default (LGD) model update for the mortgages portfolio, partially offset by the acquisition of KMC Barclays International Barclays International delivered a RoTE of 11.4%. Despite the reduced banking industry fee pool and lower client activity in Global Markets, CIB delivered a RoTE of 11.5% reflecting the benefits of income diversification and investment in sustainable growth. CC&P delivered a RoTE of 10.6% reflecting continued investment in the business resulting in balance growth and increased income, partially offset by higher impairment charges. ��� Profit before tax increased 10% to ��4,580m with a RoTE of 11.4% (Q322 YTD: 11.5%), reflecting a RoTE of 11.5% (Q322 YTD: 11.9%) in CIB and 10.6% (Q322 YTD: 8.9%) in CC&P ��� Barclays International has a diverse income profile across businesses and geographies including a significant presence in the US. The appreciation of average USD against GBP positively impacted income and profits, and adversely impacted credit impairment charges and total operating expenses ��� Total income increased to ��14,164m (Q322 YTD: ��14,005m) - CIB income decreased 5% to ��10,220m and 3% excluding the impact from prior year hedging arrangements related to the Over-issuance of Securities1 - Global Markets income decreased 18% to ��6,063m. FICC income decreased 13% to ��4,121m, driven by macro reflecting lower market volatility and client activity, partially offset by strong performance in credit. Equities income decreased 28% to ��1,942m, driven by a decline in derivatives income reflecting less volatile equity market conditions. Excluding the impact from the Over-issuance of Securities, Equities income decreased by 20% - Investment Banking fees decreased 16% to ��1,450m due to the reduced fee pool across Advisory and Debt capital markets2, partially offset by an improvement in Equity capital markets - Within Corporate, Transaction banking income increased 31% to ��2,272m driven by improved deposit margins in the higher interest rate environment. Corporate lending income increased to ��435m (Q322 YTD: ��103m loss) mainly driven by lower costs of hedging and the non-repeat of fair value losses on leverage finance lending net of mark to market gains on related hedges in the prior year - CC&P income increased 23% to ��3,944m - International Cards and Consumer Bank income increased 28% to ��2,625m reflecting higher cards balances and improved margins, including the Gap portfolio acquisition in Q222 - Private Bank income increased 21% to ��884m, due to the transfer of WM&I from Barclays UK, client balance growth and improved margins - Payments income was stable at ��435m (Q322 YTD: ��431m) driven by merchant acquiring growth, partially offset by margin compression ��� Total operating expenses decreased 8% to ��8,559m, and excluding litigation and conduct increased 9% to ��8,519m, reflecting investment in the business - CIB total operating expenses decreased 11% to ��6,192m. Operating expenses excluding litigation and conduct charges increased 6% to ��6,201m reflecting investment in talent and technology, and the impact of inflation, partially offset by efficiency savings - CC&P total operating expenses increased 4% to ��2,367m. Operating expenses excluding litigation and conduct charges increased 17% to ��2,318m, driven by higher investment spend to support growth, mainly in marketing and partnership costs including the Gap portfolio acquisition, the transfer of WM&I from Barclays UK and the impact of inflation, partially offset by efficiency savings 1 Q322 YTD included ��292m of income gain related to hedging arrangements to manage the risks of the rescission offer in relation to the Over-issuance of Securities. 2 Data source: Dealogic for the period covering 1 January to 30 September 2023. Barclays International (continued) ��� Credit impairment charges were ��1,037m (Q322 YTD: ��605m) - CIB credit impairment charges were ��nil (Q322 YTD: ��78m) driven by single name charges offset by the benefit of credit protection and the updated macroeconomic scenarios - CC&P credit impairment charges increased to ��1,037m (Q322 YTD: ��527m), with delinquencies in US cards in line with pre-pandemic experience, with 30 and 90 day arrears at 2.7% (Q322: 2.0%) and 1.3% (Q322: 0.8%) respectively. The US cards total coverage ratio was 9.7% (December 2022: 8.1%) ��� RWAs increased to ��259.2bn (December 2022: ��254.8bn) due to increased trading activity within CIB since Q422, partially offset by the impact of strengthening of GBP against USD - RWAs were broadly stable since June 2023, excluding the impact of spot USD appreciation against GBP Head Office ��� Loss before tax was ��433m (Q322 YTD: ��446m) ��� Total income was an expense of ��179m (Q322 YTD: ��139m) primarily reflecting hedge accounting and treasury items. The prior year included a one-off gain of ��86m from the sale and leaseback of UK data centres, as well as a ��74m loss on sale arising from disposals of Barclays' equity stake in Absa Group Limited ��� Total operating expenses decreased to ��224m (Q322 YTD: ��293m) primarily driven by lower litigation and conduct charges ��� RWAs were ��9.5bn (December 2022: ��8.6bn) Capital distributions ��� Barclays paid a half-year dividend of 2.7p per share on 15 September 2023, and completed the share buyback of ��750m announced at H123 results, bringing the total capital return equivalent to c.7.5p per share ��� Barclays is committed to maintaining a balance between a strong capital position, delivering total cash returns to shareholders and investment in the business. Barclays pays a progressive ordinary dividend, taking into account these objectives and the earnings outlook of the Group. The Board will also continue to supplement the ordinary dividend as appropriate, including with share buybacks Group capital and leverage ��� The CET1 ratio increased to 14.0% (December 2022: 13.9%) as CET1 capital increased by ��1.1bn to ��48.0bn (December 2022: ��46.9bn) partially offset by an increase in RWAs of ��5.4bn to ��341.9bn (December 2022: ��336.5bn): - c.130bps increase from attributable profit generated in the period - c.60bps decrease driven by returns to shareholders including the interim dividend of 2.7p per share paid in September 2023 and ��1.3bn of share buybacks announced with FY22 and H123 results. It also includes an accrual towards the FY23 dividend - c.30bps decrease from other capital movements, including the impact of regulatory change on 1 January 2023 relating to IFRS 9 transitional relief, the impact of the KMC acquisition, and other regulatory capital deductions - c.30bps decrease as a result of a ��7.4bn increase in RWAs primarily driven by increased trading activity within CIB since December 2022 - A ��3.2bn decrease in RWAs as a result of foreign exchange movements since December 2022 was broadly offset by a ��0.4bn decrease in CET1 capital due to a decrease in the currency translation reserve ��� The UK leverage ratio decreased to 5.0% (December 2022: 5.3%) primarily due to a ��72.4bn increase in leverage exposure to ��1,202.4bn (December 2022: ��1,130.0bn). This is largely driven by increased trading activity within CIB since December 2022 Group funding and liquidity ��� The liquidity and funding position remains robust and stable in the period. The liquidity pool increased to ��335.0bn (December 2022: ��318.0bn) driven by deposit growth. The composition of the liquidity pool is conservative, with 81% held in cash and deposits with central banks and the remainder primarily held in high quality government bonds, materially held at fair value or hedged ��� The strength of the funding and liquidity position is supported by a diverse and stable deposit franchise. Total deposits increased to ��561.3bn (December 2022: ��545.8bn) ��� The average1 Liquidity Coverage Ratio (LCR) remained significantly above the 100% regulatory requirement at 159% (December 2022: 156%), equivalent to a surplus of ��115.6bn (December 2022: ��114.4bn) ��� The average2 Net Stable Funding Ratio was 138% (December 2022: 137%), which represents a ��165.8bn (December 2022: ��155.6bn) surplus above the 100% regulatory requirement ��� Wholesale funding outstanding, excluding repurchase agreements, was ��186.4bn (December 2022: ��184.0bn) ��� The Group issued ��12.0bn equivalent of minimum requirement for own funds and eligible liabilities (MREL) instruments from Barclays PLC (the Parent company) year to date. The Group has a strong MREL position with a ratio of 33.4%, which is in excess of the regulatory requirement of 29.6% plus a confidential, institution specific, Prudential Regulation Authority (PRA) buffer Other matters ��� KMC acquisition: on 1 March 2023, Barclays completed the acquisition of UK specialist mortgage lender KMC, including a portfolio of mortgages totalling ��2.2bn with an RWA impact of ��0.8bn ��� Combination of the Private Bank and Barclays UK Wealth business: on 1 May 2023, WM&I was transferred from Barclays UK to CC&P, creating a combined Private Bank and Wealth Management business. The combination seeks to improve customer and client experience and create business synergies: - The business transferred includes c.��28bn of invested assets, generating annualised income of c.��0.2bn 1 Represents average of the last 12 spot month end ratios. 2 Represents average of the last four spot quarter end ratios. Anna Cross, Group Finance Director Results by Business Barclays UK Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Income statement information ��m ��m % Change ��m ��m % Change Net interest income 4,856 4,293 13 1,578 1,561 1 Net fee, commission and other income 939 996 (6) 295 355 (17) Total income 5,795 5,289 10 1,873 1,916 (2) Operating costs (3,240) (3,152) (3) (1,058) (1,069) 1 Litigation and conduct 12 (28) 9 (3) Total operating expenses (3,228) (3,180) (2) (1,049) (1,072) 2 Other net expenses - (1) - (1) Profit before impairment 2,567 2,108 22 824 843 (2) Credit impairment charges (267) (129) (59) (81) 27 Profit before tax 2,300 1,979 16 765 762 Attributable profit 1,580 1,403 13 531 549 (3) Performance measures Return on average allocated tangible equity 20.6% 18.7% 21.0% 22.1% Average allocated tangible equity (��bn) 10.2 10.0 10.1 9.9 Cost: income ratio 56% 60% 56% 56% Loan loss rate (bps) 16 8 10 14 Net interest margin 3.15% 2.78% 3.04% 3.01% As at 30.09.23 As at 31.12.22 As at 30.09.22 Balance sheet information ��bn ��bn ��bn Loans and advances to customers at amortised cost 204.9 205.1 205.1 Total assets 299.9 313.2 316.8 Customer deposits at amortised cost 243.2 258.0 261.0 Loan: deposit ratio 92% 87% 86% Risk weighted assets 73.2 73.1 73.2 Period end allocated tangible equity 10.1 10.1 10.1 Analysis of Barclays UK Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Analysis of total income ��m ��m % Change ��m ��m % Change Personal Banking 3,662 3,311 11 1,165 1,212 (4) Barclaycard Consumer UK 722 824 (12) 238 283 (16) Business Banking 1,411 1,154 22 470 421 12 Total income 5,795 5,289 10 1,873 1,916 (2) Analysis of credit impairment (charges)/releases Personal Banking (205) (47) (85) (26) Barclaycard Consumer UK (89) 42 29 2 Business Banking 27 (124) (3) (57) 95 Total credit impairment charges (267) (129) (59) (81) 27 As at 30.09.23 As at 31.12.22 As at 30.09.22 Analysis of loans and advances to customers at amortised cost ��bn ��bn ��bn Personal Banking 172.3 169.7 168.7 Barclaycard Consumer UK 9.6 9.2 9.0 Business Banking 23.0 26.2 27.4 Total loans and advances to customers at amortised cost 204.9 205.1 205.1 Analysis of customer deposits at amortised cost Personal Banking 186.1 195.6 197.3 Barclaycard Consumer UK - - - Business Banking 57.1 62.4 63.7 Total customer deposits at amortised cost 243.2 258.0 261.0 Barclays International Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Income statement information ��m ��m % Change ��m ��m % Change Net interest income 4,739 3,462 37 1,655 1,497 11 Net trading income 5,158 6,540 (21) 1,461 1,328 10 Net fee, commission and other income 4,267 4,003 7 1,326 1,240 7 Total income 14,164 14,005 1 4,442 4,065 9 Operating costs (8,519) (7,818) (9) (2,816) (2,776) (1) Litigation and conduct (40) (1,436) 97 (10) 396 Total operating expenses (8,559) (9,254) 8 (2,826) (2,380) (19) Other net income 12 23 (48) 3 10 (70) Profit before impairment 5,617 4,774 18 1,619 1,695 (4) Credit impairment charges (1,037) (605) (71) (358) (295) (21) Profit before tax 4,580 4,169 10 1,261 1,400 (10) Attributable profit 3,149 3,219 (2) 848 1,136 (25) Performance measures Return on average allocated tangible equity 11.4% 11.5% 9.2% 11.6% Average allocated tangible equity (��bn) 37.0 37.2 36.8 39.1 Cost: income ratio 60% 66% 64% 59% Loan loss rate (bps) 77 43 78 62 Net interest margin 5.90% 4.78% 5.98% 5.58% As at 30.09.23 As at 31.12.22 As at 30.09.22 Balance sheet information ��bn ��bn ��bn Loans and advances to customers at amortised cost 130.8 133.7 137.0 Loans and advances to banks at amortised cost 10.3 8.7 11.0 Debt securities at amortised cost 36.4 27.2 36.2 Loans and advances at amortised cost 177.5 169.6 184.2 Trading portfolio assets 155.4 133.8 126.3 Derivative financial instrument assets 280.4 301.7 415.7 Financial assets at fair value through the income statement 238.3 210.5 244.7 Cash collateral and settlement balances 136.0 107.7 163.3 Other assets 285.5 258.0 257.2 Total assets 1,273.1 1,181.3 1,391.4 Deposits at amortised cost 318.2 287.6 313.2 Derivative financial instrument liabilities 268.3 288.9 394.2 Loan: deposit ratio 56% 59% 59% Risk weighted assets 259.2 254.8 269.3 Period end allocated tangible equity 37.1 36.8 38.8 Analysis of Barclays International Corporate and Investment Bank Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Income statement information ��m ��m % Change ��m ��m % Change Net interest income 2,021 1,401 44 700 606 16 Net trading income 5,294 6,532 (19) 1,503 1,344 12 Net fee, commission and other income 2,905 2,859 2 879 871 1 Total income 10,220 10,792 (5) 3,082 2,821 9 Operating costs (6,201) (5,834) (6) (2,015) (2,043) 1 Litigation and conduct 9 (1,134) 7 498 (99) Total operating expenses (6,192) (6,968) 11 (2,008) (1,545) (30) Other net income 3 - 2 - Profit before impairment 4,031 3,824 5 1,076 1,276 (16) Credit impairment (charges)/releases - (78) 20 (46) Profit before tax 4,031 3,746 8 1,096 1,230 (11) Attributable profit 2,728 2,910 (6) 721 1,015 (29) Performance measures Return on average allocated tangible equity 11.5% 11.9% 9.2% 11.9% Average allocated tangible equity (��bn) 31.7 32.5 31.5 34.0 Cost: income ratio 61% 65% 65% 55% Loan loss rate (bps) - 7 (6) 13 As at 30.09.23 As at 31.12.22 As at 30.09.22 Balance sheet information ��bn ��bn ��bn Loans and advances to customers at amortised cost 87.9 90.5 93.6 Loans and advances to banks at amortised cost 9.6 8.1 10.2 Debt securities at amortised cost 36.3 27.2 36.2 Loans and advances at amortised cost 133.8 125.8 140.0 Trading portfolio assets 155.3 133.7 126.1 Derivative financial instrument assets 280.4 301.6 415.5 Financial assets at fair value through the income statement 238.2 210.5 244.6 Cash collateral and settlement balances 135.2 106.9 162.6 Other assets 237.2 222.6 220.6 Total assets 1,180.1 1,101.1 1,309.4 Deposits at amortised cost 236.9 205.8 229.5 Derivative financial instrument liabilities 268.3 288.9 394.2 Risk weighted assets 219.2 215.9 230.6 Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Analysis of total income ��m ��m % Change ��m ��m % Change FICC 4,121 4,719 (13) 1,147 1,546 (26) Equities 1,942 2,709 (28) 675 246 Global Markets 6,063 7,428 (18) 1,822 1,792 2 Advisory 422 571 (26) 80 150 (47) Equity capital markets 181 126 44 62 42 48 Debt capital markets 847 1,038 (18) 233 341 (32) Investment Banking fees 1,450 1,735 (16) 375 533 (30) Corporate lending 435 (103) 172 (181) Transaction banking 2,272 1,732 31 713 677 5 Corporate 2,707 1,629 66 885 496 78 Total income 10,220 10,792 (5) 3,082 2,821 9 Analysis of Barclays International Consumer, Cards and Payments Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Income statement information ��m ��m % Change ��m ��m % Change Net interest income 2,718 2,061 32 955 891 7 Net fee, commission, trading and other income 1,226 1,152 6 405 353 15 Total income 3,944 3,213 23 1,360 1,244 9 Operating costs (2,318) (1,984) (17) (801) (733) (9) Litigation and conduct (49) (302) 84 (17) (102) 83 Total operating expenses (2,367) (2,286) (4) (818) (835) 2 Other net income 9 23 (61) 1 10 (90) Profit before impairment 1,586 950 67 543 419 30 Credit impairment charges (1,037) (527) (97) (378) (249) (52) Profit before tax 549 423 30 165 170 (3) Attributable profit 421 309 36 127 121 5 Performance measures Return on average allocated tangible equity 10.6% 8.9% 9.6% 9.5% Average allocated tangible equity (��bn) 5.3 4.7 5.3 5.1 Cost: income ratio 60% 71% 60% 67% Loan loss rate (bps) 297 150 321 211 As at 30.09.23 As at 31.12.22 As at 30.09.22 Balance sheet information ��bn ��bn ��bn Loans and advances to customers at amortised cost 42.9 43.2 43.4 Total assets 93.0 80.2 82.0 Deposits at amortised cost 81.3 81.8 83.7 Risk weighted assets 39.9 38.9 38.7 Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Analysis of total income ��m ��m % Change ��m ��m % Change International Cards and Consumer Bank 2,625 2,053 28 890 824 8 Private Bank 884 729 21 331 270 23 Payments 435 431 1 139 150 (7) Total income 3,944 3,213 23 1,360 1,244 9 Head Office Nine months ended Three months ended 30.09.23 30.09.22 30.09.23 30.09.22 Income statement information ��m ��m % Change ��m ��m % Change Net interest income (25) 76 14 10 40 Net fee, commission and other income (154) (215) 28 (71) (40) (78) Total income (179) (139) (29) (57) (30) (90) Operating costs (220) (239) 8 (75) (94) 20 Litigation and conduct (4) (54) 93 1 (54) Total operating expenses (224) (293) 24 (74) (148) 50 Other net (expenses)/income (5) (26) 81 6 (10) Loss before impairment (408) (458) 11 (125) (188) 34 Credit impairment (charges)/releases (25) 12 (16) (5) Loss before tax (433) (446) 3 (141) (193) 27 Attributable loss (344) (635) 46 (105) (173) 39 Performance measures Average allocated tangible equity (��bn) (0.2) 1.6 (0.4) (0.4) As at 30.09.23 As at 31.12.22 As at 30.09.22 Balance sheet information ��bn ��bn ��bn Total assets 18.7 19.2 18.7 Risk weighted assets 9.5 8.6 8.2 Period end allocated tangible equity 1.0 (0.2) (3.5) Quarterly Results Summary Barclays Group Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 Income statement information ��m ��m ��m ��m ��m ��m ��m ��m Net interest income 3,247 3,270 3,053 2,741 3,068 2,422 2,341 2,230 Net fee, commission and other income 3,011 3,015 4,184 3,060 2,883 4,286 4,155 2,930 Total income 6,258 6,285 7,237 5,801 5,951 6,708 6,496 5,160 Operating costs (3,949) (3,919) (4,111) (3,748) (3,939) (3,682) (3,588) (3,514) UK bank levy - - - (176) - - - (170) Litigation and conduct - (33) 1 (79) 339 (1,334) (523) (92) Total operating expenses (3,949) (3,952) (4,110) (4,003) (3,600) (5,016) (4,111) (3,776) Other net income/(expenses) 9 3 (5) 10 (1) 7 (10) 13 Profit before impairment 2,318 2,336 3,122 1,808 2,350 1,699 2,375 1,397 Credit impairment (charges)/releases (433) (372) (524) (498) (381) (200) (141) 31 Profit before tax 1,885 1,964 2,598 1,310 1,969 1,499 2,234 1,428 Tax (charge)/credit (343) (353) (561) 33 (249) (209) (614) (104) Profit after tax 1,542 1,611 2,037 1,343 1,720 1,290 1,620 1,324 Non-controlling interests (9) (22) (8) (22) (2) (20) (1) (27) Other equity instrument holders (259) (261) (246) (285) (206) (199) (215) (218) Attributable profit 1,274 1,328 1,783 1,036 1,512 1,071 1,404 1,079 Performance measures Return on average tangible shareholders' equity 11.0% 11.4% 15.0% 8.9% 12.5% 8.7% 11.5% 9.0% Average tangible shareholders' equity (��bn) 46.5 46.7 47.6 46.7 48.6 49.0 48.8 48.0 Cost: income ratio 63% 63% 57% 69% 60% 75% 63% 73% Loan loss rate (bps) 42 37 52 49 36 20 15 (3) Basic earnings per share 8.3p 8.6p 11.3p 6.5p 9.4p 6.4p 8.4p 6.4p Basic weighted average number of shares (m) 15,405 15,523 15,770 15,828 16,148 16,684 16,682 16,985 Period end number of shares (m) 15,239 15,556 15,701 15,871 15,888 16,531 16,762 16,752 Balance sheet and capital management2 ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Loans and advances to customers at amortised cost 339.6 337.4 343.6 343.3 346.3 337.2 325.8 319.9 Loans and advances to banks at amortised cost 11.5 10.9 11.0 10.0 12.5 12.5 11.4 9.7 Debt securities at amortised cost 54.3 53.1 48.9 45.5 54.8 46.1 34.5 31.8 Loans and advances at amortised cost 405.4 401.4 403.5 398.8 413.7 395.8 371.7 361.5 Loans and advances at amortised cost impairment coverage ratio 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.5% 1.6% Total assets 1,591.7 1,549.7 1,539.1 1,513.7 1,726.9 1,589.2 1,496.1 1,384.3 Deposits at amortised cost 561.3 554.7 555.7 545.8 574.4 568.7 546.5 519.4 Tangible net asset value per share 316p 291p 301p 295p 286p 297p 294p 291p Common equity tier 1 ratio 14.0% 13.8% 13.6% 13.9% 13.8% 13.6% 13.8% 15.1% Common equity tier 1 capital 48.0 46.6 46.0 46.9 48.6 46.7 45.3 47.3 Risk weighted assets 341.9 336.9 338.4 336.5 350.8 344.5 328.8 314.1 UK leverage ratio 5.0% 5.1% 5.1% 5.3% 5.0% 5.1% 5.0% 5.2% UK leverage exposure 1,202.4 1,183.7 1,168.9 1,130.0 1,232.1 1,151.2 1,123.5 1,137.9 Funding and liquidity Group liquidity pool (��bn) 335.0 330.7 333.0 318.0 325.8 342.5 319.8 291.0 Liquidity coverage ratio3 159% 157% 157% 156% 156% 157% 159% 160% Net stable funding ratio4 138% 139% 139% 137% Loan: deposit ratio 72% 72% 73% 73% 72% 70% 68% 70% 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. 2 Refer to pages 32 to 36 for further information on how capital, RWAs and leverage are calculated. 3 The Liquidity Coverage Ratio is based on the average of the last 12 spot month end ratios. Prior period LCR comparatives have been updated for consistency. 4 Represents average of the last four spot quarter end positions. Quarterly Results by Business Barclays UK Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421 Income statement information ��m ��m ��m ��m ��m ��m ��m ��m Net interest income 1,578 1,660 1,618 1,600 1,561 1,393 1,339 1,313 Net fee, commission and other income 295 301 343 370 355 331 310 386 Total income 1,873 1,961 1,961 1,970 1,916 1,724 1,649 1,699 Operating costs (1,058) (1,090) (1,092) (1,108) (1,069) (1,085) (998) (1,202) UK bank levy - - - (26) - - - (36) Litigation and conduct 9 5 (2) (13) (3) (16) (9) (5) Total operating expenses (1,049) (1,085) (1,094) (1,147) (1,072) (1,101) (1,007) (1,243) Other net income/(expenses) - - - 1 (1) - - (1) Profit before impairment 824 876 867 824 843 623 642 455 Credit impairment (charges)/releases (59) (95) (113) (157) (81) - (48) 59 Profit before tax 765 781 754 667 762 623 594 514 Attributable profit 531 534 515 474 549 458 396 420 Balance sheet information ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Loans and advances to customers at amortised cost 204.9 206.8 208.2 205.1 205.1 205.9 207.3 208.8 Total assets 299.9 304.8 308.6 313.2 316.8 318.8 317.2 321.2 Customer deposits at amortised cost 243.2 249.8 254.3 258.0 261.0 261.5 260.3 260.6 Loan: deposit ratio 92% 90% 90% 87% 86% 85% 85% 85% Risk weighted assets 73.2 73.0 74.6 73.1 73.2 72.2 72.7 72.3 Period end allocated tangible equity 10.1 10.1 10.3 10.1 10.1 9.9 10.1 10.0 Performance measures Return on average allocated tangible equity 21.0% 20.9% 20.0% 18.7% 22.1% 18.4% 15.6% 16.8% Average allocated tangible equity (��bn) 10.1 10.2 10.3 10.2 9.9 10.0 10.1 10.0 Cost: income ratio 56% 55% 56% 58% 56% 64% 61% 73% Loan loss rate (bps) 10 17 20 27 14 - 9 (10) Net interest margin 3.04% 3.22% 3.18% 3.10% 3.01% 2.71% 2.62% 2.49% Analysis of Barclays UK Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421 Analysis of total income ��m ��m ��m ��m ��m ��m ��m ��m Personal Banking 1,165 1,244 1,253 1,229 1,212 1,077 1,022 983 Barclaycard Consumer UK 238 237 247 269 283 265 276 352 Business Banking 470 480 461 472 421 382 351 364 Total income 1,873 1,961 1,961 1,970 1,916 1,724 1,649 1,699 Analysis of credit impairment (charges)/releases Personal Banking (85) (92) (28) (120) (26) (42) 21 8 Barclaycard Consumer UK 29 (35) (83) (12) 2 84 (44) 114 Business Banking (3) 32 (2) (25) (57) (42) (25) (63) Total credit impairment (charges)/releases (59) (95) (113) (157) (81) - (48) 59 Analysis of loans and advances to customers at amortised cost ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Personal Banking 172.3 173.3 173.6 169.7 168.7 167.1 166.5 165.4 Barclaycard Consumer UK 9.6 9.3 9.0 9.2 9.0 8.8 8.4 8.7 Business Banking 23.0 24.2 25.6 26.2 27.4 30.0 32.4 34.7 Total loans and advances to customers at amortised cost 204.9 206.8 208.2 205.1 205.1 205.9 207.3 208.8 Analysis of customer deposits at amortised cost Personal Banking 186.1 191.1 194.3 195.6 197.3 197.0 196.6 196.4 Barclaycard Consumer UK - - - - - - - - Business Banking 57.1 58.7 60.0 62.4 63.7 64.5 63.7 64.2 Total customer deposits at amortised cost 243.2 249.8 254.3 258.0 261.0 261.5 260.3 260.6 Barclays International Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 Income statement information ��m ��m ��m ��m ��m ��m ��m ��m Net interest income 1,655 1,730 1,354 1,465 1,497 1,029 936 955 Net trading income 1,461 1,278 2,419 1,169 1,328 2,766 2,446 789 Net fee, commission and other income 1,326 1,432 1,509 1,228 1,240 1,321 1,442 1,766 Total income 4,442 4,440 5,282 3,862 4,065 5,116 4,824 3,510 Operating costs (2,816) (2,747) (2,956) (2,543) (2,776) (2,537) (2,505) (2,160) UK bank levy - - - (133) - - - (134) Litigation and conduct (10) (33) 3 (67) 396 (1,319) (513) (84) Total operating expenses (2,826) (2,780) (2,953) (2,743) (2,380) (3,856) (3,018) (2,378) Other net income 3 6 3 5 10 5 8 3 Profit before impairment 1,619 1,666 2,332 1,124 1,695 1,265 1,814 1,135 Credit impairment charges (358) (275) (404) (328) (295) (209) (101) (23) Profit before tax 1,261 1,391 1,928 796 1,400 1,056 1,713 1,112 Attributable profit 848 953 1,348 625 1,136 783 1,300 818 Balance sheet information ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Loans and advances to customers at amortised cost 130.8 126.6 131.0 133.7 137.0 126.7 113.9 106.4 Loans and advances to banks at amortised cost 10.3 9.7 9.8 8.7 11.0 11.3 10.2 8.4 Debt securities at amortised cost 36.4 35.2 30.8 27.2 36.2 29.3 20.7 19.0 Loans and advances at amortised cost 177.5 171.5 171.6 169.6 184.2 167.3 144.8 133.8 Trading portfolio assets 155.4 165.1 137.7 133.8 126.3 126.9 134.1 146.9 Derivative financial instrument assets 280.4 264.9 256.6 301.7 415.7 343.5 288.8 261.5 Financial assets at fair value through the income statement 238.3 232.2 245.0 210.5 244.7 209.3 203.8 188.2 Cash collateral and settlement balances 136.0 123.9 125.5 107.7 163.3 128.5 132.0 88.1 Other assets 285.5 268.8 275.0 258.0 257.2 275.1 255.5 225.6 Total assets 1,273.1 1,226.4 1,211.4 1,181.3 1,391.4 1,250.6 1,159.0 1,044.1 Deposits at amortised cost 318.2 305.0 301.6 287.6 313.2 307.4 286.1 258.8 Derivative financial instrument liabilities 268.3 254.5 246.7 288.9 394.2 321.2 277.2 256.4 Loan: deposit ratio 56% 56% 57% 59% 59% 54% 51% 52% Risk weighted assets 259.2 254.6 255.1 254.8 269.3 263.8 245.1 230.9 Period end allocated tangible equity 37.1 36.7 36.8 36.8 38.8 38.0 35.6 33.2 Performance measures Return on average allocated tangible equity 9.2% 10.3% 14.5% 6.4% 11.6% 8.4% 14.8% 9.9% Average allocated tangible equity (��bn) 36.8 37.1 37.1 38.9 39.1 37.3 35.1 32.9 Cost: income ratio 64% 63% 56% 71% 59% 75% 63% 68% Loan loss rate (bps) 78 63 94 75 62 49 28 7 Net interest margin 5.98% 5.85% 5.87% 5.71% 5.58% 4.41% 4.15% 4.14% 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. Analysis of Barclays International Corporate and Investment Bank Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 Income statement information ��m ��m ��m ��m ��m ��m ��m ��m Net interest income 700 856 465 548 606 410 385 432 Net trading income 1,503 1,353 2,437 1,201 1,344 2,738 2,450 774 Net fee, commission and other income 879 953 1,074 827 871 885 1,103 1,426 Total income 3,082 3,162 3,976 2,576 2,821 4,033 3,938 2,632 Operating costs (2,015) (1,984) (2,202) (1,796) (2,043) (1,870) (1,921) (1,562) UK bank levy - - - (126) - - - (128) Litigation and conduct 7 (1) 3 (55) 498 (1,314) (318) (59) Total operating expenses (2,008) (1,985) (2,199) (1,977) (1,545) (3,184) (2,239) (1,749) Other net income 2 1 - 2 - - - 1 Profit before impairment 1,076 1,178 1,777 601 1,276 849 1,699 884 Credit impairment releases/(charges) 20 13 (33) (41) (46) (65) 33 73 Profit before tax 1,096 1,191 1,744 560 1,230 784 1,732 957 Attributable profit 721 798 1,209 454 1,015 579 1,316 695 Balance sheet information ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Loans and advances to customers at amortised cost 87.9 84.8 89.2 90.5 93.6 86.5 79.5 73.4 Loans and advances to banks at amortised cost 9.6 9.0 9.2 8.1 10.2 10.0 9.4 7.6 Debt securities at amortised cost 36.3 35.1 30.7 27.2 36.2 29.3 20.7 19.0 Loans and advances at amortised cost 133.8 128.9 129.1 125.8 140.0 125.8 109.6 100.0 Trading portfolio assets 155.3 165.0 137.6 133.7 126.1 126.7 134.0 146.7 Derivative financial instruments assets 280.4 264.8 256.5 301.6 415.5 343.4 288.7 261.5 Financial assets at fair value through the income statement 238.2 232.1 244.9 210.5 244.6 209.2 203.8 188.1 Cash collateral and settlement balances 135.2 122.5 124.7 106.9 162.6 127.7 131.2 87.2 Other assets 237.2 224.6 230.3 222.6 220.6 237.2 222.5 195.8 Total assets 1,180.1 1,137.9 1,123.1 1,101.1 1,309.4 1,170.0 1,089.8 979.3 Deposits at amortised cost 236.9 225.5 221.0 205.8 229.5 229.5 214.7 189.4 Derivative financial instrument liabilities 268.3 254.5 246.7 288.9 394.2 321.2 277.1 256.4 Risk weighted assets 219.2 216.5 216.8 215.9 230.6 227.6 213.5 200.7 Performance measures Return on average allocated tangible equity 9.2% 10.0% 15.2% 5.4% 11.9% 7.1% 17.1% 9.7% Average allocated tangible equity (��bn) 31.5 31.8 31.8 33.7 34.0 32.7 30.8 28.7 Cost: income ratio 65% 63% 55% 77% 55% 79% 57% 66% Loan loss rate (bps) (6) (4) 10 13 13 20 (12) (29) Net interest margin 3.65% 3.98% 3.95% 3.73% 3.56% 2.88% 2.52% 2.67% Analysis of total income ��m ��m ��m ��m ��m ��m ��m ��m FICC 1,147 1,186 1,788 976 1,546 1,529 1,644 546 Equities 675 563 704 440 246 1,411 1,052 501 Global Markets 1,822 1,749 2,492 1,416 1,792 2,940 2,696 1,047 Advisory 80 130 212 197 150 236 185 287 Equity capital markets 62 69 50 40 42 37 47 158 Debt capital markets 233 273 341 243 341 281 416 511 Investment Banking fees 375 472 603 480 533 554 648 956 Corporate lending 172 168 95 (128) (181) (47) 125 176 Transaction banking 713 773 786 808 677 586 469 453 Corporate 885 941 881 680 496 539 594 629 Total income 3,082 3,162 3,976 2,576 2,821 4,033 3,938 2,632 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. Analysis of Barclays International Consumer, Cards and Payments Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421 Income statement information ��m ��m ��m ��m ��m ��m ��m ��m Net interest income 955 874 889 918 891 619 551 522 Net fee, commission, trading and other income 405 404 417 368 353 464 335 356 Total income 1,360 1,278 1,306 1,286 1,244 1,083 886 878 Operating costs (801) (763) (754) (747) (733) (667) (584) (598) UK bank levy - - - (7) - - - (6) Litigation and conduct (17) (32) - (12) (102) (5) (195) (25) Total operating expenses (818) (795) (754) (766) (835) (672) (779) (629) Other net income 1 5 3 3 10 5 8 2 Profit before impairment 543 488 555 523 419 416 115 251 Credit impairment charges (378) (288) (371) (287) (249) (144) (134) (96) Profit/(loss) before tax 165 200 184 236 170 272 (19) 155 Attributable profit/(loss) 127 155 139 171 121 204 (16) 123 Balance sheet information ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Loans and advances to customers at amortised cost 42.9 41.7 41.8 43.2 43.4 40.2 34.4 33.0 Total assets 93.0 88.5 88.3 80.2 82.0 80.6 69.2 64.8 Deposits at amortised cost 81.3 79.5 80.6 81.8 83.7 77.9 71.4 69.4 Risk weighted assets 39.9 38.1 38.2 38.9 38.7 36.2 31.6 30.2 Performance measures Return on average allocated tangible equity 9.6% 11.8% 10.5% 13.0% 9.5% 17.8% (1.5)% 11.7% Average allocated tangible equity (��bn) 5.3 5.3 5.3 5.2 5.1 4.6 4.3 4.2 Cost: income ratio 60% 62% 58% 60% 67% 62% 88% 72% Loan loss rate (bps) 321 255 332 245 211 132 145 105 Net interest margin 8.88% 8.25% 8.42% 8.40% 8.41% 6.68% 6.56% 6.29% Analysis of total income ��m ��m ��m ��m ��m ��m ��m ��m International Cards and Consumer Bank 890 835 900 860 824 691 538 552 Private Bank 331 295 258 285 270 245 214 200 Payments 139 148 148 141 150 147 134 126 Total income 1,360 1,278 1,306 1,286 1,244 1,083 886 878 Head Office Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421 Income statement information ��m ��m ��m ��m ��m ��m ��m ��m Net interest income 14 (120) 81 (324) 10 - 66 (38) Net fee, commission and other income (71) 4 (87) 293 (40) (132) (43) (11) Total income (57) (116) (6) (31) (30) (132) 23 (49) Operating costs (75) (82) (63) (97) (94) (60) (85) (152) UK bank levy - - - (17) - - - - Litigation and conduct 1 (5) - 1 (54) 1 (1) (3) Total operating expenses (74) (87) (63) (113) (148) (59) (86) (155) Other net income/(expenses) 6 (3) (8) 4 (10) 2 (18) 11 Loss before impairment (125) (206) (77) (140) (188) (189) (81) (193) Credit impairment (charges)/releases (16) (2) (7) (13) (5) 9 8 (5) Loss before tax (141) (208) (84) (153) (193) (180) (73) (198) Attributable loss (105) (159) (80) (63) (173) (170) (292) (159) Balance sheet information ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Total assets 18.7 18.5 19.1 19.2 18.7 19.8 19.9 19.0 Risk weighted assets1 9.5 9.3 8.8 8.6 8.2 8.6 11.0 11.0 Period end allocated tangible equity1 1.0 (1.5) 0.2 (0.2) (3.5) 1.1 3.6 5.5 Performance measures1 Average allocated tangible equity (��bn) (0.4) (0.6) 0.2 (2.4) (0.4) 1.7 3.6 5.1 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. Performance Management Margins and balances Nine months ended 30.09.23 Nine months ended 30.09.22 Net interest income Average customer assets Net interest margin Net interest income Average customer assets Net interest margin ��m ��m % ��m ��m % Barclays UK 4,856 206,338 3.15 4,293 206,308 2.78 Corporate and Investment Bank 1,582 54,770 3.86 1,241 54,960 3.02 Consumer, Cards and Payments 2,718 42,674 8.52 2,061 37,481 7.35 Barclays International 4,300 97,444 5.90 3,302 92,441 4.78 Barclays Group 9,156 303,782 4.03 7,595 298,749 3.40 Other1 414 236 Total Barclays Group net interest income 9,570 7,831 1 Other comprises net interest income from Markets within Barclays International and Head Office including hedge accounting. The Barclays Group NIM has increased 63bps from 3.40% in Q322 to 4.03% in Q323, driven by the higher interest rate environment and continued structural hedge income momentum across the Group as well as higher balances in CC&P including the Gap portfolio acquisition, partially offset by product dynamics in deposits and mortgages. The Group's combined product and equity structural hedge notional amount at September 2023 was ��252bn (June 2023: ��256bn), with an average duration of close to 2.5 years (2022: average duration close to 3 years). Gross structural hedge contributions of ��2,609m (Q322: ��1,487m) and net structural hedge contributions of ��(5,964)m (Q322: ��(361)m) are included in Group net interest income. Gross structural hedge contributions represent the absolute level of interest earned from the fixed receipts on swaps in the structural hedge, while the net structural hedge contributions represent the net interest earned on the difference between the structural hedge rate and prevailing floating rates. Quarterly analysis Q323 Q223 Q123 Q422 Q322 Net interest income ��m ��m ��m ��m ��m Barclays UK 1,578 1,660 1,618 1,600 1,561 Corporate and Investment Bank 491 540 551 556 529 Consumer, Cards and Payments 955 874 889 918 891 Barclays International 1,446 1,414 1,440 1,474 1,420 Barclays Group 3,024 3,074 3,058 3,074 2,981 Average customer assets ��m ��m ��m ��m ��m Barclays UK 205,693 207,073 206,241 204,941 205,881 Corporate and Investment Bank 53,290 54,417 56,612 59,146 58,891 Consumer, Cards and Payments 42,678 42,503 42,840 43,319 42,019 Barclays International 95,968 96,920 99,452 102,465 100,910 Barclays Group 301,661 303,993 305,693 307,406 306,791 Net interest margin % % % % % Barclays UK 3.04 3.22 3.18 3.10 3.01 Corporate and Investment Bank 3.65 3.98 3.95 3.73 3.56 Consumer, Cards and Payments 8.88 8.25 8.42 8.40 8.41 Barclays International 5.98 5.85 5.87 5.71 5.58 Barclays Group 3.98 4.06 4.06 3.97 3.85 Credit Risk Taskforce on Disclosures about Expected Credit Losses (DECL) The latest DECL III Taskforce recommendation for the minimum product groupings and geographical breakdown have been adopted in the credit risk performance section for this period and the prior period comparatives have been aligned accordingly. The Group intends to adopt further enhancements in future periods. Loans and advances at amortised cost by geography Total loans and advances at amortised cost in the credit risk performance section includes loans and advances at amortised cost to banks and loans and advances at amortised cost to customers. The table below presents a product and geographical breakdown by stages of loans and advances at amortised cost. Also included are stage allocation of debt securities and off-balance sheet loan commitments and financial guarantee contracts by gross exposure, impairment allowance and coverage ratio as at 30 September 2023. Impairment allowance under IFRS 9 considers both the drawn and the undrawn counterparty exposure. For retail portfolios, the total impairment allowance is allocated to gross loans and advances to the extent allowance does not exceed the drawn exposure and any excess is reported on the liabilities side of the balance sheet as a provision. For corporate portfolios, impairment allowance on undrawn exposure is reported on the liability side of the balance sheet as a provision. Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 30.09.23 ��m ��m ��m ��m ��m ��m ��m ��m Retail mortgages 149,754 17,865 1,466 169,085 57 105 105 267 Retail credit cards 7,755 2,280 201 10,236 161 367 117 645 Retail other 6,913 1,171 305 8,389 58 133 155 346 Corporate loans1 54,223 8,744 1,759 64,726 193 211 361 765 Total UK 218,645 30,060 3,731 252,436 469 816 738 2,023 Retail mortgages 4,467 353 709 5,529 6 32 327 365 Retail credit cards 23,695 3,641 1,471 28,807 381 1,161 1,170 2,712 Retail other 3,175 349 263 3,787 20 36 88 144 Corporate loans 60,455 5,041 805 66,301 90 177 245 512 Total Rest of the World 91,792 9,384 3,248 104,424 497 1,406 1,830 3,733 Total loans and advances at amortised cost 310,437 39,444 6,979 356,860 966 2,222 2,568 5,756 Debt securities 51,116 3,237 - 54,353 21 23 - 44 Total loans and advances at amortised cost including debt securities 361,553 42,681 6,979 411,213 987 2,245 2,568 5,800 Off-balance sheet loan commitments and financial guarantee contracts2 383,040 25,419 1,264 409,723 173 336 45 554 Total3,4 744,593 68,100 8,243 820,936 1,160 2,581 2,613 6,354 Net exposure Coverage ratio Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 30.09.23 ��m ��m ��m ��m % % % % Retail mortgages 149,697 17,760 1,361 168,818 - 0.6 7.2 0.2 Retail credit cards 7,594 1,913 84 9,591 2.1 16.1 58.2 6.3 Retail other 6,855 1,038 150 8,043 0.8 11.4 50.8 4.1 Corporate loans1 54,030 8,533 1,398 63,961 0.4 2.4 20.5 1.2 Total UK 218,176 29,244 2,993 250,413 0.2 2.7 19.8 0.8 Retail mortgages 4,461 321 382 5,164 0.1 9.1 46.1 6.6 Retail credit cards 23,314 2,480 301 26,095 1.6 31.9 79.5 9.4 Retail other 3,155 313 175 3,643 0.6 10.3 33.5 3.8 Corporate loans 60,365 4,864 560 65,789 0.1 3.5 30.4 0.8 Total Rest of the World 91,295 7,978 1,418 100,691 0.5 15.0 56.3 3.6 Total loans and advances at amortised cost 309,471 37,222 4,411 351,104 0.3 5.6 36.8 1.6 Debt securities 51,095 3,214 - 54,309 - 0.7 - 0.1 Total loans and advances at amortised cost including debt securities 360,566 40,436 4,411 405,413 0.3 5.3 36.8 1.4 Off-balance sheet loan commitments and financial guarantee contracts2 382,867 25,083 1,219 409,169 - 1.3 3.6 0.1 Total3,4 743,433 65,519 5,630 814,582 0.2 3.8 31.7 0.8 1 Includes Business Banking, which has a gross exposure of ��15.9bn and an impairment allowance of ��445m. This comprises ��110m impairment allowance on ��10.1bn Stage 1 exposure, ��82m on ��4.4bn Stage 2 exposure and ��253m on ��1.4bn Stage 3 exposure. Excluding this, total coverage for corporate loans in UK is 0.7%. 2 Excludes loan commitments and financial guarantees of ��15.3bn carried at fair value. 3 Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of ��216.3bn and impairment allowance of ��165m. This comprises ��20m impairment allowance on ��215.1bn Stage 1 exposure, ��9m on ��1.0bn Stage 2 exposure and ��136m on ��147m Stage 3 exposure. 4 The annualised loan loss rate is 43bps after applying the total impairment charge of ��1,329m. Gross exposure Impairment allowance Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 31.12.22 ��m ��m ��m ��m ��m ��m ��m ��m Retail mortgages 145,821 17,735 1,481 165,037 21 49 58 128 Retail credit cards 7,119 2,569 251 9,939 127 493 137 757 Retail other 8,202 1,197 293 9,692 72 138 145 355 Corporate loans1 55,187 12,528 2,008 69,723 317 264 360 941 Total UK 216,329 34,029 4,033 254,391 537 944 700 2,181 Retail mortgages 7,851 465 933 9,249 8 24 356 388 Retail credit cards 22,669 3,880 1,129 27,678 331 1,127 818 2,276 Retail other 5,268 271 427 5,966 28 28 163 219 Corporate loans 56,704 4,290 564 61,558 144 160 182 486 Total Rest of the World 92,492 8,906 3,053 104,451 511 1,339 1,519 3,369 Total loans and advances at amortised cost 308,821 42,935 7,086 358,842 1,048 2,283 2,219 5,550 Debt securities 41,724 3,805 - 45,529 9 33 - 42 Total loans and advances at amortised cost including debt securities 350,545 46,740 7,086 404,371 1,057 2,316 2,219 5,592 Off-balance sheet loan commitments and financial guarantee contracts2 372,945 30,694 1,180 404,819 245 315 23 583 Total3,4 723,490 77,434 8,266 809,190 1,302 2,631 2,242 6,175 Net exposure Coverage ratio Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total As at 31.12.22 ��m ��m ��m ��m % % % % Retail mortgages 145,800 17,686 1,423 164,909 - 0.3 3.9 0.1 Retail credit cards 6,992 2,076 114 9,182 1.8 19.2 54.6 7.6 Retail other 8,130 1,059 148 9,337 0.9 11.5 49.5 3.7 Corporate loans1 54,870 12,264 1,648 68,782 0.6 2.1 17.9 1.3 Total UK 215,792 33,085 3,333 252,210 0.2 2.8 17.4 0.9 Retail mortgages 7,843 441 577 8,861 0.1 5.2 38.2 4.2 Retail credit cards 22,338 2,753 311 25,402 1.5 29.0 72.5 8.2 Retail other 5,240 243 264 5,747 0.5 10.3 38.2 3.7 Corporate loans 56,560 4,130 382 61,072 0.3 3.7 32.3 0.8 Total Rest of the World 91,981 7,567 1,534 101,082 0.6 15.0 49.8 3.2 Total loans and advances at amortised cost 307,773 40,652 4,867 353,292 0.3 5.3 31.3 1.5 Debt securities 41,715 3,772 - 45,487 - 0.9 - 0.1 Total loans and advances at amortised cost including debt securities 349,488 44,424 4,867 398,779 0.3 5.0 31.3 1.4 Off-balance sheet loan commitments and financial guarantee contracts2 372,700 30,379 1,157 404,236 0.1 1.0 1.9 0.1 Total3,4 722,188 74,803 6,024 803,015 0.2 3.4 27.1 0.8 1 Includes Business Banking, which has a gross exposure of ��18.1bn and an impairment allowance of ��519m. This comprises ��149m impairment allowance on ��10.5bn Stage 1 exposure, ��121m on ��6.0bn Stage 2 exposure and ��249m on ��1.6bn Stage 3 exposure. Excluding this, total coverage for corporate loans in UK is 0.8%. 2 Excludes loan commitments and financial guarantees of ��14.9bn carried at fair value. 3 Other financial assets subject to impairment not included in the table above include cash collateral and settlement balances, financial assets at fair value through other comprehensive income and other assets. These have a total gross exposure of ��180.1bn and impairment allowance of ��163m. This comprises ��10m impairment allowance on ��178.4bn Stage 1 exposure, ��9m on ��1.5bn Stage 2 exposure and ��144m on ��149m Stage 3 exposure. 4 The annualised loan loss rate is 30bps after applying the total impairment charge of ��1,220m. Loans and advances at amortised cost by product The table below presents a product breakdown by stages of loans and advances at amortised cost. Also included is a breakdown of Stage 2 past due balances. Stage 2 As at 30.09.23 Stage 1 Not past due <=30 days past due >30 days past due Total Stage 3 Total Gross exposure ��m ��m ��m ��m ��m ��m ��m Retail mortgages 154,221 15,417 1,935 866 18,218 2,175 174,614 Retail credit cards 31,450 5,226 386 309 5,921 1,672 39,043 Retail other 10,088 1,313 125 82 1,520 568 12,176 Corporate loans 114,678 13,556 153 76 13,785 2,564 131,027 Total 310,437 35,512 2,599 1,333 39,444 6,979 356,860 Impairment allowance Retail mortgages 63 92 23 22 137 432 632 Retail credit cards 542 1,180 158 190 1,528 1,287 3,357 Retail other 78 121 21 27 169 243 490 Corporate loans 283 367 13 8 388 606 1,277 Total 966 1,760 215 247 2,222 2,568 5,756 Net exposure Retail mortgages 154,158 15,325 1,912 844 18,081 1,743 173,982 Retail credit cards 30,908 4,046 228 119 4,393 385 35,686 Retail other 10,010 1,192 104 55 1,351 325 11,686 Corporate loans 114,395 13,189 140 68 13,397 1,958 129,750 Total 309,471 33,752 2,384 1,086 37,222 4,411 351,104 Coverage ratio % % % % % % % Retail mortgages - 0.6 1.2 2.5 0.8 19.9 0.4 Retail credit cards 1.7 22.6 40.9 61.5 25.8 77.0 8.6 Retail other 0.8 9.2 16.8 32.9 11.1 42.8 4.0 Corporate loans 0.2 2.7 8.5 10.5 2.8 23.6 1.0 Total 0.3 5.0 8.3 18.5 5.6 36.8 1.6 As at 31.12.22 Gross exposure ��m ��m ��m ��m ��m ��m ��m Retail mortgages 153,672 15,990 1,684 526 18,200 2,414 174,286 Retail credit cards 29,788 5,731 284 434 6,449 1,380 37,617 Retail other 13,470 1,232 104 132 1,468 720 15,658 Corporate loans 111,891 16,552 159 107 16,818 2,572 131,281 Total 308,821 39,505 2,231 1,199 42,935 7,086 358,842 Impairment allowance Retail mortgages 29 53 11 9 73 414 516 Retail credit cards 458 1,334 100 186 1,620 955 3,033 Retail other 100 118 22 26 166 308 574 Corporate loans 461 401 13 10 424 542 1,427 Total 1,048 1,906 146 231 2,283 2,219 5,550 Net exposure Retail mortgages 153,643 15,937 1,673 517 18,127 2,000 173,770 Retail credit cards 29,330 4,397 184 248 4,829 425 34,584 Retail other 13,370 1,114 82 106 1,302 412 15,084 Corporate loans 111,430 16,151 146 97 16,394 2,030 129,854 Total 307,773 37,599 2,085 968 40,652 4,867 353,292 Coverage ratio % % % % % % % Retail mortgages - 0.3 0.7 1.7 0.4 17.1 0.3 Retail credit cards 1.5 23.3 35.2 42.9 25.1 69.2 8.1 Retail other 0.7 9.6 21.2 19.7 11.3 42.8 3.7 Corporate loans 0.4 2.4 8.2 9.3 2.5 21.1 1.1 Total 0.3 4.8 6.5 19.3 5.3 31.3 1.5 Measurement uncertainty Scenarios used to calculate the Group's ECL charge were refreshed in Q323 with the Baseline scenario reflecting the latest consensus macroeconomic forecasts available at the time of the scenario refresh. In the Baseline scenario, although the outlook in major economies has improved somewhat since last year, GDP growth remains weak in the coming quarters and beyond, as tight monetary policy continues to restrain growth. Consumer price inflation eases over 2023 as base effects, supply chain pressures and lower energy prices provide some downward pressure. UK and US unemployment rates increase only gradually in the coming quarters, peaking at 4.5% in Q424 and reaching 4.4% in Q324 respectively. Central banks continue raising interest rates, with both the UK bank rate and the US federal funds rate reaching their peaks at 6.0% and 5.5% respectively during 2023. The Downside 2 scenario is broadly aligned to the previous scenario refresh. Inflation rates rise again as energy prices suddenly surge again amid renewed geopolitical risks. Inflation becomes entrenched and inflation expectations go up, contributing to higher pressure on wage growth. Central banks are forced to raise interest rates sharply with the UK bank rate reaching 8% and the US federal funds rate peaking at 7%. Weakened businesses lay off workers and consumers stop spending exacerbating the downward stress. Unemployment peaks at 8.5% in the UK and 9.8% in the US. Given already stretched valuations, the sharp increase in borrowing costs sees house prices decrease significantly. In the Upside scenarios, lower energy prices add downward pressure on prices globally, while recovering labour force participation limits wage growth. As a result of easing inflation, central banks lower interest rates to support the economic recovery. The methodology for estimating scenario probability weights involves simulating a range of future paths for UK and US GDP using historical data with the five scenarios mapped against the distribution of these future paths. The median is centred around the Baseline with scenarios further from the Baseline attracting a lower weighting before the five weights are normalised to total 100%. The decrease in the Downside and Upside weightings and the increase in the Baseline weighting reflected a closer alignment between actual GDP and Baseline, increasing the expected likelihood of the Baseline relative to the other scenarios. An improving economic outlook moved the Baseline US GDP paths further from the Downside scenarios, further reducing the Downside weights. The economic uncertainty adjustments of ��0.3bn (30 June 2023: ��0.3bn) have been applied as overlays to the modelled ECL output. These adjustments consist of a customer and client uncertainty provision of ��0.3bn (30 June 2023: ��0.2bn) which has been applied to customers and clients considered most vulnerable to affordability pressures, and a model uncertainty adjustment of ��nil (30 June 2023: ��0.1bn). The following tables show the key macroeconomic variables used in the five scenarios (5 year annual paths) and the probability weights applied to each scenario. Macroeconomic variables used in the calculation of ECL As at 30.09.23 2023 2024 2025 2026 2027 Baseline % % % % % UK GDP1 0.4 0.4 1.4 2.0 2.0 UK unemployment2 4.1 4.4 4.3 4.5 4.8 UK HPI3 (5.8) (2.7) 1.9 3.8 7.3 UK bank rate 5.1 5.9 5.2 4.7 4.4 US GDP1 2.0 0.9 1.7 1.8 1.8 US unemployment4 3.6 4.3 4.4 4.4 4.4 US HPI5 0.9 1.9 3.1 3.1 3.1 US federal funds rate 5.2 4.9 4.1 3.8 3.8 Downside 2 UK GDP1 0.2 (4.2) (2.1) 2.5 2.1 UK unemployment2 4.2 6.9 8.4 7.8 7.2 UK HPI3 (6.4) (20.5) (17.9) (1.2) 10.2 UK bank rate 5.1 7.8 7.6 6.4 5.2 US GDP1 1.8 (3.9) (1.9) 2.6 2.3 US unemployment4 3.8 7.8 9.7 8.8 7.4 US HPI5 0.6 (4.2) (3.8) 0.7 5.2 US federal funds rate 5.3 6.9 6.8 5.4 4.4 Downside 1 UK GDP1 0.3 (1.9) (0.3) 2.2 2.0 UK unemployment2 4.1 5.7 6.3 6.2 6.0 UK HPI3 (6.1) (11.9) (8.4) 1.3 8.8 UK bank rate 5.1 6.8 6.4 5.6 4.9 US GDP1 1.9 (1.5) (0.1) 2.2 2.1 US unemployment4 3.7 6.1 7.0 6.6 5.9 US HPI5 0.8 (1.2) (0.4) 1.9 4.2 US federal funds rate 5.3 5.9 5.3 4.8 4.1 Upside 2 UK GDP1 0.8 4.0 3.3 2.8 2.4 UK unemployment2 4.0 3.7 3.5 3.6 3.6 UK HPI3 (3.2) 9.4 6.2 4.4 6.0 UK bank rate 4.7 3.6 2.6 2.5 2.5 US GDP1 2.3 3.9 3.2 2.8 2.8 US unemployment4 3.5 3.4 3.6 3.6 3.6 US HPI5 2.6 5.0 5.2 4.9 4.9 US federal funds rate 4.9 3.5 2.9 2.8 2.8 Upside 1 UK GDP1 0.6 2.2 2.4 2.4 2.2 UK unemployment2 4.1 4.0 3.9 4.0 4.2 UK HPI3 (4.5) 3.2 4.0 4.1 6.6 UK bank rate 4.9 4.8 3.9 3.5 3.4 US GDP1 2.2 2.4 2.5 2.3 2.3 US unemployment4 3.6 3.9 4.0 4.0 4.0 US HPI5 1.7 3.5 4.1 4.0 4.0 US federal funds rate 5.1 4.3 3.6 3.4 3.3 1 Average Real GDP seasonally adjusted change in year. 2 Average UK unemployment rate 16-year+. 3 Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. 4 Average US civilian unemployment rate 16-year+. 5 Change in year end US HPI = FHFA House Price Index, relative to prior year end. As at 30.06.23 2023 2024 2025 2026 2027 Baseline % % % % % UK GDP1 0.3 0.9 1.6 1.8 1.9 UK unemployment2 4.1 4.4 4.2 4.2 4.2 UK HPI3 (6.1) (1.3) 2.0 4.3 5.7 UK bank rate 4.8 4.6 3.9 3.8 3.5 US GDP1 1.1 0.7 2.0 2.0 2.0 US unemployment4 3.8 4.6 4.6 4.6 4.6 US HPI5 (0.7) 3.6 2.4 2.7 2.7 US federal funds rate 5.0 3.7 3.0 2.8 3.0 Downside 2 UK GDP1 (0.5) (5.0) (0.4) 2.5 1.9 UK unemployment2 4.4 7.8 8.3 7.7 7.1 UK HPI3 (10.2) (20.5) (17.7) 5.6 8.2 UK bank rate 5.5 8.0 7.3 6.1 4.8 US GDP1 0.5 (4.8) (0.3) 2.8 2.1 US unemployment4 4.5 8.7 9.6 8.5 7.0 US HPI5 (1.8) (3.7) (4.2) 2.6 4.8 US federal funds rate 5.7 7.0 6.5 5.1 4.2 Downside 1 UK GDP1 (0.1) (2.1) 0.6 2.2 1.9 UK unemployment2 4.2 6.1 6.2 5.9 5.6 UK HPI3 (8.1) (11.3) (8.2) 5.0 7.0 UK bank rate 5.2 6.1 5.6 4.8 4.1 US GDP1 0.8 (2.0) 0.8 2.4 2.0 US unemployment4 4.1 6.7 7.1 6.5 5.8 US HPI5 (1.2) (0.1) (0.9) 2.7 3.8 US federal funds rate 5.2 4.9 4.5 4.3 3.8 Upside 2 UK GDP1 1.2 4.1 3.2 2.6 2.3 UK unemployment2 3.9 3.6 3.5 3.6 3.6 UK HPI3 0.4 10.6 4.8 4.2 3.8 UK bank rate 4.4 3.3 2.5 2.5 2.5 US GDP1 2.2 3.9 3.0 2.8 2.8 US unemployment4 3.4 3.5 3.6 3.6 3.6 US HPI5 2.5 5.5 4.6 4.5 4.5 US federal funds rate 4.7 3.2 2.2 2.0 2.0 Upside 1 UK GDP1 0.8 2.5 2.4 2.2 2.1 UK unemployment2 4.0 4.0 3.9 3.9 3.9 UK HPI3 (2.9) 4.5 3.4 4.3 4.7 UK bank rate 4.6 4.0 3.1 3.0 3.0 US GDP1 1.6 2.3 2.5 2.4 2.4 US unemployment4 3.6 4.1 4.1 4.1 4.1 US HPI5 0.9 4.6 3.5 3.6 3.6 US federal funds rate 4.8 3.4 2.6 2.5 2.5 1 Average Real GDP seasonally adjusted change in year. 2 Average UK unemployment rate 16-year+. 3 Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. 4 Average US civilian unemployment rate 16-year+. 5 Change in year end US HPI = FHFA House Price Index, relative to prior year end. As at 31.12.22 2022 2023 2024 2025 2026 Baseline % % % % % UK GDP1 3.3 (0.8) 0.9 1.8 1.9 UK unemployment2 3.7 4.5 4.4 4.1 4.2 UK HPI3 8.4 (4.7) (1.7) 2.2 2.2 UK bank rate 1.8 4.4 4.1 3.8 3.4 US GDP1 1.8 0.5 1.2 1.5 1.5 US unemployment4 3.7 4.3 4.7 4.7 4.7 US HPI5 11.2 1.8 1.5 2.3 2.4 US federal funds rate 2.1 4.8 3.6 3.1 3.0 Downside 2 UK GDP1 3.3 (3.4) (3.8) 2.0 2.3 UK unemployment2 3.7 6.0 8.4 8.0 7.4 UK HPI3 8.4 (18.3) (18.8) (7.7) 8.2 UK bank rate 1.8 7.3 7.9 6.6 5.5 US GDP1 1.8 (2.7) (3.4) 2.0 2.6 US unemployment4 3.7 6.0 8.5 8.1 7.1 US HPI5 11.2 (3.1) (4.0) (1.9) 4.8 US federal funds rate 2.1 6.6 6.9 5.8 4.6 Downside 1 UK GDP1 3.3 (2.1) (1.5) 1.9 2.1 UK unemployment2 3.7 5.2 6.4 6.0 5.8 UK HPI3 8.4 (11.7) (10.6) (2.8) 5.2 UK bank rate 1.8 5.9 6.1 5.3 4.6 US GDP1 1.8 (1.1) (1.1) 1.7 2.1 US unemployment4 3.7 5.1 6.6 6.4 5.9 US HPI5 11.2 (0.7) (1.3) 0.2 3.6 US federal funds rate 2.1 5.8 5.4 4.4 3.9 Upside 2 UK GDP1 3.3 2.8 3.7 2.9 2.4 UK unemployment2 3.7 3.5 3.4 3.4 3.4 UK HPI3 8.4 8.7 7.5 4.4 4.2 UK bank rate 1.8 3.1 2.6 2.5 2.5 US GDP1 1.8 3.3 3.5 2.8 2.8 US unemployment4 3.7 3.3 3.3 3.3 3.3 US HPI5 11.2 5.8 5.1 4.5 4.5 US federal funds rate 2.1 3.6 2.9 2.8 2.8 Upside 1 UK GDP1 3.3 1.0 2.3 2.4 2.1 UK unemployment2 3.7 4.0 3.9 3.8 3.8 UK HPI3 8.4 1.8 2.9 3.3 3.2 UK bank rate 1.8 3.5 3.3 3.0 2.8 US GDP1 1.8 1.9 2.3 2.2 2.2 US unemployment4 3.7 3.8 4.0 4.0 4.0 US HPI5 11.2 3.8 3.3 3.4 3.4 US federal funds rate 2.1 3.9 3.4 3.0 3.0 1 Average Real GDP seasonally adjusted change in year. 2 Average UK unemployment rate 16-year+. 3 Change in year end UK HPI = Halifax All Houses, All Buyers index, relative to prior year end. 4 Average US civilian unemployment rate 16-year+. 5 Change in year end US HPI = FHFA House Price Index, relative to prior year end Scenario probability weighting Upside 2 Upside 1 Baseline Downside 1 Downside 2 % % % % % As at 30.09.23 Scenario probability weighting 12.3 24.4 41.5 15.1 6.7 As at 30.06.23 Scenario probability weighting 13.0 24.7 40.2 15.2 6.9 As at 31.12.22 Scenario probability weighting 10.9 23.1 39.4 17.6 9.0 Treasury and Capital Risk Regulatory minimum requirements Capital The Group's Overall Capital Requirement for CET1 is 11.8% comprising a 4.5% Pillar 1 minimum, a 2.5% Capital Conservation Buffer (CCB), a 1.5% Global Systemically Important Institution (G-SII) buffer, a 2.4% Pillar 2A requirement and a 0.9% Countercyclical Capital Buffer (CCyB). The Group's CCyB is based on the buffer rate applicable for each jurisdiction in which the Group has exposures. Following the Financial Policy Committee (FPC) announcement on 5 July 2022, the UK CCyB increased from 1% to 2% with effect from 5 July 2023. The buffer rates set by other national authorities for non-UK exposures are not currently material. The Group's Pillar 2A requirement as per the PRA's Individual Capital Requirement is 4.3% of which at least 56.25% needs to be met with CET1 capital, equating to 2.4% of RWAs. The Pillar 2A requirement, based on a point in time assessment, has been set as a proportion of RWAs and is subject to at least annual review. The Group's CET1 target ratio of 13-14% takes into account headroom above requirements which includes a confidential institution-specific PRA buffer. The Group remains above its minimum capital regulatory requirements including the PRA buffer. Leverage The Group is subject to a UK leverage ratio requirement of 4.1%. This comprises the 3.25% minimum requirement, a G-SII additional leverage ratio buffer (G-SII ALRB) of 0.53% and a countercyclical leverage ratio buffer (CCLB) of 0.3%. The Group is also required to disclose an average UK leverage ratio which is based on capital on the last day of each month in the quarter and an exposure measure for each day in the quarter. MREL The Group is required to meet the higher of: (i) two times the sum of 8% Pillar 1 and 4.3% Pillar 2A equating to 24.7% of RWAs; and (ii) 6.75% of leverage exposures. In addition, the higher of regulatory capital and leverage buffers apply. CET1 capital cannot be counted towards both MREL and the buffers, meaning that the buffers, including the above mentioned confidential institution-specific PRA buffer, will effectively be applied above MREL requirements. In the disclosures that follow, references to CRR, as amended by CRR II, mean the capital regulatory requirements, as they form part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended. Capital ratios1,2 As at 30.09.23 As at 30.06.23 As at 31.12.22 CET1 14.0% 13.8% 13.9% T1 17.5% 17.9% 17.9% Total regulatory capital 20.0% 20.5% 20.8% MREL ratio as a percentage of total RWAs 33.4% 32.9% 33.5% Own funds and eligible liabilities ��m ��m ��m Total equity excluding non-controlling interests per the balance sheet 68,315 67,669 68,292 Less: other equity instruments (recognised as AT1 capital) (11,857) (13,759) (13,284) Adjustment to retained earnings for foreseeable ordinary share dividends (497) (622) (787) Adjustment to retained earnings for foreseeable repurchase of shares (223) - - Adjustment to retained earnings for foreseeable other equity coupons (45) (39) (37) Other regulatory adjustments and deductions Additional value adjustments (PVA) (1,630) (1,800) (1,726) Goodwill and intangible assets (8,243) (8,584) (8,224) Deferred tax assets that rely on future profitability excluding temporary differences (1,480) (1,372) (1,500) Fair value reserves related to gains or losses on cash flow hedges 6,421 7,992 7,237 Excess of expected losses over impairment (292) (228) (119) Gains or losses on liabilities at fair value resulting from own credit (142) (116) (620) Defined benefit pension fund assets (2,960) (2,995) (3,430) Direct and indirect holdings by an institution of own CET1 instruments (20) (20) (20) Adjustment under IFRS 9 transitional arrangements 290 206 700 Other regulatory adjustments 321 308 396 CET1 capital 47,958 46,640 46,878 AT1 capital Capital instruments and related share premium accounts 11,857 13,759 13,284 Other regulatory adjustments and deductions (60) (60) (60) AT1 capital 11,797 13,699 13,224 T1 capital 59,755 60,339 60,102 T2 capital Capital instruments and related share premium accounts 8,126 8,212 9,000 Qualifying T2 capital (including minority interests) issued by subsidiaries 757 769 1,095 Credit risk adjustments (excess of impairment over expected losses) 58 71 35 Other regulatory adjustments and deductions (160) (160) (160) Total regulatory capital 68,536 69,231 70,072 Less : Ineligible T2 capital (including minority interests) issued by subsidiaries (757) (769) (1,095) Eligible liabilities 46,477 42,559 43,851 Total own funds and eligible liabilities3 114,256 111,021 112,828 Total RWAs 341,868 336,946 336,518 1 CET1, T1 and T2 capital, and RWAs are calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements and the grandfathering of CRR II non-compliant capital instruments. 2 The fully loaded CET1 ratio, as is relevant for assessing against the conversion trigger in Barclays PLC AT1 securities, was 13.9%, with ��47.7bn of CET1 capital and ��341.8bn of RWAs calculated without applying the transitional arrangements of the CRR as amended by CRR II. 3 As at 30 September 2023, the Group's MREL requirement, excluding the PRA buffer, was to hold ��101.1bn of own funds and eligible liabilities equating to 29.6% of RWAs. The Group remains above its MREL regulatory requirement including the PRA buffer Movement in CET1 capital Three months ended 30.09.23 Nine months ended 30.09.23 ��m ��m Opening CET1 capital 46,640 46,878 Profit for the period attributable to equity holders 1,533 5,151 Own credit relating to derivative liabilities - 8 Ordinary share dividends paid and foreseen (298) (920) Purchased and foreseeable share repurchase (750) (1,250) Other equity coupons paid and foreseen (267) (774) Increase in retained regulatory capital generated from earnings 218 2,215 Net impact of share schemes 120 (36) Fair value through other comprehensive income reserve (157) (82) Currency translation reserve 810 (363) Other reserves (16) (36) Increase/(decrease) in other qualifying reserves 757 (517) Pension remeasurements within reserves (51) (527) Defined benefit pension fund asset deduction 35 470 Net impact of pensions (16) (57) Additional value adjustments (PVA) 170 96 Goodwill and intangible assets 341 (19) Deferred tax assets that rely on future profitability excluding those arising from temporary differences (108) 20 Excess of expected loss over impairment (64) (173) Adjustment under IFRS 9 transitional arrangements 84 (410) Other regulatory adjustments (64) (75) Increase/(decrease) in regulatory capital due to adjustments and deductions 359 (561) Closing CET1 capital 47,958 47,958 CET1 capital increased ��1.1bn to ��48.0bn (December 2022: ��46.9bn). ��5.2bn of capital generated from profit was partially offset by distributions of ��2.9bn comprising: ��� ��1.3bn of share buybacks announced with FY22 and H123 results ��� ��0.9bn of ordinary share dividend paid and foreseen reflecting ��0.4bn half year 2023 dividend paid and a ��0.5bn accrual towards FY23 dividend ��� ��0.8bn of equity coupons paid and foreseen Other significant movements in the period were: ��� ��0.4bn decrease in the currency translation reserve driven by the strengthening of GBP against USD since December 2022 ��� ��0.4bn decrease in IFRS 9 transitional relief primarily due to the relief applied to the pre-2020 impairment charge reducing to 0% in 2023 from 25% in 2022 and the relief applied to the post-2020 impairment charge reducing to 50% in 2023 from 75% in 2022. RWAs by risk type and business Credit risk1 Counterparty credit risk Market Risk Operational risk Total RWAs STD IRB STD IRB Settlement Risk CVA STD IMA As at 30.09.23 ��m ��m ��m ��m ��m ��m ��m ��m ��m ��m Barclays UK 11,731 49,928 160 - - 90 215 - 11,054 73,178 Corporate and Investment Bank 38,869 69,467 17,983 21,784 123 3,108 17,542 23,253 27,093 219,222 Consumer, Cards and Payments 28,613 3,987 191 51 - 42 2 535 6,527 39,948 Barclays International 67,482 73,454 18,174 21,835 123 3,150 17,544 23,788 33,620 259,170 Head Office 4,116 6,213 - - - - - - (809) 9,520 Barclays Group 83,329 129,595 18,334 21,835 123 3,240 17,759 23,788 43,865 341,868 As at 30.06.23 Barclays UK 8,377 52,867 245 - - 124 374 - 11,054 73,041 Corporate and Investment Bank 33,567 75,880 17,551 20,687 454 2,841 16,179 22,251 27,093 216,503 Consumer, Cards and Payments 26,306 4,484 202 51 - 63 3 424 6,527 38,060 Barclays International 59,873 80,364 17,753 20,738 454 2,904 16,182 22,675 33,620 254,563 Head Office 2,584 7,567 - - - - - - (809) 9,342 Barclays Group 70,834 140,798 17,998 20,738 454 3,028 16,556 22,675 43,865 336,946 As at 31.12.22 Barclays UK 6,836 54,752 167 - - 72 233 - 11,023 73,083 Corporate and Investment Bank 35,738 75,413 16,814 21,449 80 3,093 13,716 22,497 27,064 215,864 Consumer, Cards and Payments 27,882 3,773 214 46 - 61 - 388 6,559 38,923 Barclays International 63,620 79,186 17,028 21,495 80 3,154 13,716 22,885 33,623 254,787 Head Office 2,636 6,843 - - - - - - (831) 8,648 Barclays Group 73,092 140,781 17,195 21,495 80 3,226 13,949 22,885 43,815 336,518 1 Credit risk RWAs of ��9.8bn relating to deferred tax assets, have been reclassified from IRB to STD with no impact to total RWAs. Movement analysis of RWAs Credit risk Counterparty credit risk Market risk Operational risk Total RWAs ��m ��m ��m ��m ��m Opening RWAs (as at 31.12.22) 213,873 41,996 36,834 43,815 336,518 Book size (1,047) 1,901 4,749 50 5,653 Acquisitions and disposals 688 - - - 688 Book quality 1,466 (6) - - 1,460 Model updates (2,600) - - - (2,600) Methodology and policy 2,740 583 - - 3,323 Foreign exchange movements1 (2,196) (942) (36) - (3,174) Total RWA movements (949) 1,536 4,713 50 5,350 Closing RWAs (as at 30.09.23) 212,924 43,532 41,547 43,865 341,868 1 Foreign exchange movements does not include the impact of foreign exchange for modelled market risk or operational risk. Overall RWAs increased ��5.4bn to ��341.9bn (December 2022: ��336.5bn). Credit risk RWAs decreased ��0.9bn: ��� A ��1.0bn decrease in book size within CIB, partially offset by higher credit card balances within CC&P ��� A ��1.5bn increase in book quality RWAs primarily driven by changes in risk parameters and HPI refresh within Barclays UK ��� A ��2.6bn decrease in model updates primarily driven by capital LGD model update for the mortgage portfolio to reflect the significant decrease in repossession volume during and post the COVID pandemic ��� A ��2.7bn increase in methodology and policy primarily driven by the recalibration of the post model adjustment (PMA) introduced to address the IRB roadmap changes. ��� A ��2.2bn decrease as a result of foreign exchange movements primarily due to the strengthening of GBP against USD since December 2022 Counterparty Credit risk RWAs increased ��1.5bn: ��� A ��1.9bn increase in book size primarily due to increased trading activity within CIB since December 2022 Market risk RWAs increased ��4.7bn: ��� A ��4.7bn increase in book size primarily due to increased trading activity within CIB since December 2022 Leverage ratios1,2 As at 30.09.23 As at 30.06.23 As at 31.12.22 ��m ��m ��m UK leverage ratio3 5.0% 5.1% 5.3% T1 capital 59,755 60,339 60,102 UK leverage exposure 1,202,417 1,183,703 1,129,973 Average UK leverage ratio 4.6% 4.8% 4.8% Average T1 capital 58,661 60,176 60,865 Average UK leverage exposure 1,262,290 1,261,094 1,280,972 1 Capital and leverage measures are calculated applying the transitional arrangements of the CRR as amended by CRR II. 2 Fully loaded UK leverage ratio was 4.9%, with ��59.5bn of T1 capital and ��1,202.1bn of leverage exposure. Fully loaded average UK leverage ratio was 4.6% with ��58.4bn of T1 capital and ��1,262.0bn of leverage exposure. Fully loaded UK leverage ratios are calculated without applying the transitional arrangements of the CRR as amended by CRR II. 3 Although the leverage ratio is expressed in terms of T1 capital, 75% of the minimum requirement as well as the G-SII ALRB and CCLB must be covered solely with CET1 capital. The CET1 capital held against the 0.53% G-SII ALRB was ��6.3bn and against the 0.3% CCLB was ��3.6bn. The UK leverage ratio decreased to 5.0% (December 2022: 5.3%) primarily due to a ��72.4bn increase in leverage exposure to ��1,202.4bn (December 2022: ��1,130.0bn). This is largely driven by increased trading activity within CIB since December 2022. Condensed Consolidated Financial Statements Condensed consolidated income statement (unaudited) Nine months ended 30.09.23 Nine months ended 30.09.22 ��m ��m Total income 19,780 19,155 Operating expenses excluding litigation and conduct (11,979) (11,209) Litigation and conduct (32) (1,518) Operating expenses (12,011) (12,727) Other net income/(expenses) 7 (4) Profit before impairment 7,776 6,424 Credit impairment charges (1,329) (722) Profit before tax 6,447 5,702 Tax charge (1,257) (1,072) Profit after tax 5,190 4,630 Attributable to: Equity holders of the parent 4,385 3,987 Other equity instrument holders 766 620 Total equity holders of the parent 5,151 4,607 Non-controlling interests 39 23 Profit after tax 5,190 4,630 Earnings per share Basic earnings per ordinary share 28.2p 24.2p Condensed consolidated balance sheet (unaudited) As at 30.09.23 As at 31.12.22 Assets ��m ��m Cash and balances at central banks 262,800 256,351 Cash collateral and settlement balances 140,844 112,597 Debt securities at amortised cost 54,309 45,487 Loans and advances at amortised cost to banks 11,534 10,015 Loans and advances at amortised cost to customers 339,570 343,277 Reverse repurchase agreements and other similar secured lending 1,424 776 Trading portfolio assets 155,374 133,813 Financial assets at fair value through the income statement 241,142 213,568 Derivative financial instruments 282,144 302,380 Financial assets at fair value through other comprehensive income 72,638 65,062 Investments in associates and joint ventures 909 922 Goodwill and intangible assets 8,265 8,239 Current tax assets 109 385 Deferred tax assets 6,766 6,991 Other assets 13,893 13,836 Total assets 1,591,721 1,513,699 Liabilities Deposits at amortised cost from banks 28,501 19,979 Deposits at amortised cost from customers 532,791 525,803 Cash collateral and settlement balances 129,032 96,927 Repurchase agreements and other similar secured borrowing 41,254 27,052 Debt securities in issue 102,794 112,881 Subordinated liabilities 11,220 11,423 Trading portfolio liabilities 67,189 72,924 Financial liabilities designated at fair value 326,448 271,637 Derivative financial instruments 268,634 289,620 Current tax liabilities 734 580 Deferred tax liabilities 16 16 Other liabilities 14,133 15,597 Total liabilities 1,522,746 1,444,439 Equity Called up share capital and share premium 4,257 4,373 Other reserves (2,124) (2,192) Retained earnings 54,325 52,827 Shareholders' equity attributable to ordinary shareholders of the parent 56,458 55,008 Other equity instruments 11,857 13,284 Total equity excluding non-controlling interests 68,315 68,292 Non-controlling interests 660 968 Total equity 68,975 69,260 Total liabilities and equity 1,591,721 1,513,699 Condensed consolidated statement of changes in equity (unaudited) Called up share capital and share premium Other equity instruments Other reserves Retained earnings Total Non-controlling interests1 Total equity Nine months ended 30.09.2023 ��m ��m ��m ��m ��m ��m ��m Balance as at 1 January 2023 4,373 13,284 (2,192) 52,827 68,292 968 69,260 Profit after tax - 766 - 4,385 5,151 39 5,190 Currency translation movements - - (363) - (363) - (363) Fair value through other comprehensive income reserve - - (82) - (82) - (82) Cash flow hedges - - 816 - 816 - 816 Retirement benefit remeasurements - - - (527) (527) - (527) Own credit - - (469) - (469) - (469) Total comprehensive income for the period - 766 (98) 3,858 4,526 39 4,565 Employee share schemes and hedging thereof 52 - - 407 459 - 459 Issue and redemption of other equity instruments - (1,426) - (41) (1,467) (312) (1,779) Other equity instruments coupons paid - (766) - - (766) - (766) Vesting of employee share schemes - - (2) (494) (496) - (496) Dividends paid - - - (1,210) (1,210) (39) (1,249) Repurchase of shares (168) - 168 (1,027) (1,027) - (1,027) Other movements - (1) - 5 4 4 8 Balance as at 30 September 2023 4,257 11,857 (2,124) 54,325 68,315 660 68,975 Three months ended 30.09.2023 ��m ��m ��m ��m ��m ��m ��m Balance as at 1 July 2023 4,325 13,759 (4,457) 54,042 67,669 876 68,545 Profit after tax - 259 - 1,274 1,533 9 1,542 Currency translation movements - - 810 - 810 - 810 Fair value through other comprehensive income reserve - - (157) - (157) - (157) Cash flow hedges - - 1,571 - 1,571 - 1,571 Retirement benefit remeasurements - - - (51) (51) - (51) Own credit - - 25 - 25 - 25 Total comprehensive income for the period - 259 2,249 1,223 3,731 9 3,740 Employee share schemes and hedging thereof 14 - - 36 50 - 50 Issue and redemption of other equity instruments - (1,926) - (33) (1,959) (219) (2,178) Other equity instruments coupons paid - (259) - - (259) - (259) Vesting of employee share schemes - - 2 (10) (8) - (8) Dividends paid - - - (417) (417) (9) (426) Repurchase of shares (82) - 82 (524) (524) - (524) Other movements - 24 - 8 32 3 35 Balance as at 30 September 2023 4,257 11,857 (2,124) 54,325 68,315 660 68,975 As at 30.09.23 As at 31.12.22 Other Reserves ��m ��m Currency translation reserve 4,409 4,772 Fair value through other comprehensive income reserve (1,642) (1,560) Cash flow hedging reserve (6,419) (7,235) Own credit reserve (2) 467 Other reserves and treasury shares 1,530 1,364 Total (2,124) (2,192) 1 During Q323, a redemption notice was published related to the 9% Permanent Interest Bearing Capital Bonds, as a result of which ��40m was transferred from non-controlling interests to subordinated liabilities ahead of redemption on 11 October 2023. This item is presented within Issue and redemption of other equity instruments. Appendix: Non-IFRS Performance Measures The Group's management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements, as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods, and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well. Non-IFRS performance measures glossary Measure Definition Loan: deposit ratio Total loans and advances at amortised cost divided by total deposits at amortised cost. Attributable profit Profit after tax attributable to ordinary shareholders of the parent. Period end tangible equity refers to: Period end tangible shareholders' equity (for Barclays Group) Shareholders' equity attributable to ordinary shareholders of the parent, adjusted for the deduction of intangible assets and goodwill Period end allocated tangible equity (for businesses) Allocated tangible equity is calculated as 13.5% (2022: 13.5%) of RWAs for each business, adjusted for capital deductions, excluding goodwill and intangible assets, reflecting the assumptions the Barclays Group uses for capital planning purposes. Head Office allocated tangible equity represents the difference between the Barclays Group's tangible shareholders' equity and the amounts allocated to businesses. Average tangible equity refers to: Average tangible shareholders' equity (for Barclays Group) Calculated as the average of the previous month's period end tangible shareholders' equity and the current month's period end tangible shareholders' equity. The average tangible shareholders' equity for the period is the average of the monthly averages within that period. Average allocated tangible equity (for businesses) Calculated as the average of the previous month's period end allocated tangible equity and the current month's period end allocated tangible equity. The average allocated tangible equity for the period is the average of the monthly averages within that period. Return on tangible equity (RoTE) refers to: Return on average tangible shareholders' equity (for Barclays Group) Annualised Group attributable profit, as a proportion of average tangible shareholders' equity. The components of the calculation have been included on pages 41 to 42. Return on average allocated tangible equity (for businesses) Annualised business attributable profit, as a proportion of that business's average allocated tangible equity. The components of the calculation have been included on pages 41 to 43. Operating expenses excluding litigation and conduct A measure of total operating expenses excluding litigation and conduct charges. Operating costs A measure of total operating expenses excluding litigation and conduct charges and UK bank levy. Cost: income ratio Total operating expenses divided by total income. Loan loss rate Quoted in basis points and represents total impairment charges divided by total gross loans and advances held at amortised cost at the balance sheet date. Net interest margin Annualised net interest income divided by the sum of average customer assets. The components of the calculation have been included on page 23. Tangible net asset value per share Calculated by dividing shareholders' equity, excluding non-controlling interests and other equity instruments, less goodwill and intangible assets, by the number of issued ordinary shares. The components of the calculation have been included on page 44. Performance measures excluding the impact of the Over-issuance of Securities Calculated by excluding the impact of the Over-issuance of Securities from performance measures. The components of the calculations have been included on page 44. Profit before impairment Calculated by excluding credit impairment charges or releases from profit before tax. Returns Nine months ended 30.09.23 Barclays UK Corporate and Investment Bank Consumer, Cards and Payments Barclays International Head Office Barclays Group Return on average tangible equity ��m ��m ��m ��m ��m ��m Attributable profit/(loss) 1,580 2,728 421 3,149 (344) 4,385 ��bn ��bn ��bn ��bn ��bn ��bn Average equity 14.0 31.7 6.2 37.9 3.6 55.5 Average goodwill and intangibles (3.8) - (0.9) (0.9) (3.8) (8.5) Average tangible equity 10.2 31.7 5.3 37.0 (0.2) 47.0 Return on average tangible equity 20.6% 11.5% 10.6% 11.4% n/m 12.5% Nine months ended 30.09.22 Barclays UK Corporate and Investment Bank Consumer, Cards and Payments Barclays International Head Office Barclays Group Return on average tangible equity ��m ��m ��m ��m ��m ��m Attributable profit/(loss) 1,403 2,910 309 3,219 (635) 3,987 ��bn ��bn ��bn ��bn ��bn ��bn Average equity 13.6 32.5 5.6 38.1 5.2 56.9 Average goodwill and intangibles (3.6) - (0.9) (0.9) (3.6) (8.1) Average tangible equity 10.0 32.5 4.7 37.2 1.6 48.8 Return on average tangible equity 18.7% 11.9% 8.9% 11.5% n/m 10.9% Barclays Group Return on average tangible shareholders' equity Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 ��m ��m ��m ��m ��m ��m ��m ��m Attributable profit 1,274 1,328 1,783 1,036 1,512 1,071 1,404 1,079 ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Average shareholders' equity 55.1 55.4 55.9 54.9 56.8 57.1 56.9 56.1 Average goodwill and intangibles (8.6) (8.7) (8.3) (8.2) (8.2) (8.1) (8.1) (8.1) Average tangible shareholders' equity 46.5 46.7 47.6 46.7 48.6 49.0 48.8 48.0 Return on average tangible shareholders' equity 11.0% 11.4% 15.0% 8.9% 12.5% 8.7% 11.5% 9.0% Barclays UK Return on average allocated tangible equity Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421 ��m ��m ��m ��m ��m ��m ��m ��m Attributable profit 531 534 515 474 549 458 396 420 ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Average allocated equity 14.0 14.2 13.9 13.7 13.5 13.6 13.7 13.6 Average goodwill and intangibles (3.9) (4.0) (3.6) (3.5) (3.6) (3.6) (3.6) (3.6) Average allocated tangible equity 10.1 10.2 10.3 10.2 9.9 10.0 10.1 10.0 Return on average allocated tangible equity 21.0% 20.9% 20.0% 18.7% 22.1% 18.4% 15.6% 16.8% 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. Barclays International Return on average allocated tangible equity Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 ��m ��m ��m ��m ��m ��m ��m ��m Attributable profit 848 953 1,348 625 1,136 783 1,300 818 ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Average allocated equity 37.6 38.0 38.1 39.9 40.1 38.2 36.0 33.8 Average goodwill and intangibles (0.8) (0.9) (1.0) (1.0) (1.0) (0.9) (0.9) (0.9) Average allocated tangible equity 36.8 37.1 37.1 38.9 39.1 37.3 35.1 32.9 Return on average allocated tangible equity 9.2% 10.3% 14.5% 6.4% 11.6% 8.4% 14.8% 9.9% Corporate and Investment Bank Return on average allocated tangible equity Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 ��m ��m ��m ��m ��m ��m ��m ��m Attributable profit 721 798 1,209 454 1,015 579 1,316 695 ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Average allocated equity 31.5 31.8 31.8 33.7 34.0 32.7 30.8 28.7 Average goodwill and intangibles - - - - - - - - Average allocated tangible equity 31.5 31.8 31.8 33.7 34.0 32.7 30.8 28.7 Return on average allocated tangible equity 9.2% 10.0% 15.2% 5.4% 11.9% 7.1% 17.1% 9.7% Consumer, Cards and Payments Return on average allocated tangible equity Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q421 ��m ��m ��m ��m ��m ��m ��m ��m Attributable profit/(loss) 127 155 139 171 121 204 (16) 123 ��bn ��bn ��bn ��bn ��bn ��bn ��bn ��bn Average allocated equity 6.1 6.2 6.3 6.2 6.1 5.5 5.2 5.1 Average goodwill and intangibles (0.8) (0.9) (1.0) (1.0) (1.0) (0.9) (0.9) (0.9) Average allocated tangible equity 5.3 5.3 5.3 5.2 5.1 4.6 4.3 4.2 Return on average allocated tangible equity 9.6% 11.8% 10.5% 13.0% 9.5% 17.8% (1.5)% 11.7% 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. Tangible net asset value per share As at 30.09.23 As at 31.12.22 As at 30.09.22 ��m ��m ��m Total equity excluding non-controlling interests 68,315 68,292 67,034 Other equity instruments (11,857) (13,284) (13,270) Goodwill and intangibles (8,265) (8,239) (8,371) Tangible shareholders' equity attributable to ordinary shareholders of the parent 48,193 46,769 45,393 m m m Shares in issue 15,239 15,871 15,888 p p p Tangible net asset value per share 316 295 286 Performance measures excluding the impact of the Over-issuance of Securities Barclays Group Q323 Q223 Q123 Q422 Q322 Q222 Q122 Q4211 ��m ��m ��m ��m ��m ��m ��m ��m Statutory attributable profit 1,274 1,328 1,783 1,036 1,512 1,071 1,404 1,079 Net impact of the Over-issuance of Securities - - - - 29 (341) (240) (38) Attributable profit excluding the impact of the Over-issuance of Securities 1,274 1,328 1,783 1,036 1,483 1,412 1,644 1,117 Average tangible shareholders' equity (��bn) 46.5 46.7 47.6 46.7 48.6 49.0 48.8 48.0 Return on average tangible shareholders' equity excluding the impact of the Over-issuance of Securities 11.0% 11.4% 15.0% 8.9% 12.2% 11.5% 13.5% 9.3% 1 The comparative capital and financial metrics relating to Q421 have been restated to reflect the impact of the Over-issuance of Securities. Reconciliation of financial results excluding the impact of the Over-issuance of Securities in the prior year Three months ended 30.09.23 30.09.22 Statutory Statutory Impact of the Over-issuance of Securities Excluding impact of the Over-issuance of Securities ��m ��m ��m ��m % change Income Corporate and Investment Bank 3,082 2,821 (466) 3,287 (6) of which: FICC 1,147 1,546 - 1,546 (26) Equities 675 246 (466) 712 (5) Global Markets 1,822 1,792 (466) 2,258 (19) Total operating expenses Corporate and Investment Bank (2,008) (1,545) 503 (2,048) 2 Nine months ended 30.09.23 30.09.22 Statutory Statutory Impact of the Over-issuance of Securities Excluding impact of the Over-issuance of Securities ��m ��m ��m ��m % change Income Corporate and Investment Bank 10,220 10,792 292 10,500 (3) of which: FICC 4,121 4,719 - 4,719 (13) Equities 1,942 2,709 292 2,417 (20) Global Markets 6,063 7,428 292 7,136 (15) Total operating expenses Corporate and Investment Bank (6,192) (6,968) (966) (6,002) (3) Notable Items Nine months ended 30.09.23 Nine months ended 30.09.22 ��m Profit before tax Attributable profit Profit before tax Attributable profit Statutory 6,447 4,385 5,702 3,987 Net impact from the Over-issuance of Securities - - (674) (552) Customer remediation costs on legacy loan portfolios - - (282) (228) Settlements in principle in respect of industry-wide devices investigations by SEC and CFTC - - (165) (165) Other litigation and conduct (32) (13) (105) (98) Structural cost actions (119) (91) (78) (64) Re-measurement of UK DTAs - - - (346) Excluding the impact of notable items 6,598 4,489 7,006 5,440 Three months ended 30.09.23 Three months ended 30.09.22 ��m Profit before tax Attributable profit Profit before tax Attributable profit Statutory 1,885 1,274 1,969 1,512 Net impact from the Over-issuance of Securities - - 37 29 Customer remediation costs on legacy loan portfolios - - (101) (81) Other litigation and conduct - 9 (63) (60) Structural cost actions (50) (38) (22) (18) Excluding the impact of notable items 1,935 1,303 2,118 1,642 The Group's management believes that the non-IFRS performance measures excluding notable items, included in the table above, provide valuable information to enable users of the financial statements to assess the performance of the Group. The notable items are separately identified within the Group's results disclosures which, when excluded from Barclays' statutory financials, provide an underlying profit and loss performance of the Group and enables consistent comparison of performance from one period to another. These non-IFRS performance measures excluding notable items are included as a reference point only and are not incorporated within any of the key financial metrics used in our Group Targets, which are measured on a statutory basis. Shareholder Information Results timetable1 Date 2023 Full Year Results and Annual Report 20 February 2024 % Change3 Exchange rates2 30.09.23 30.06.23 31.12.22 30.09.22 30.06.23 31.12.22 30.09.22 Period end - USD/GBP 1.22 1.27 1.21 1.12 (4)% 1% 9% YTD average - USD/GBP 1.24 1.23 1.24 1.26 1% - (2)% 3 month average - USD/GBP 1.27 1.25 1.17 1.18 2% 9% 8% Period end - EUR/GBP 1.15 1.16 1.13 1.14 (1)% 2% 1% YTD average - EUR/GBP 1.15 1.14 1.17 1.18 1% (2)% (3)% 3 month average - EUR/GBP 1.16 1.15 1.15 1.17 1% 1% (1)% Share price data Barclays PLC (p) 158.94 153.38 158.52 144.30 Barclays PLC number of shares (m)4 15,239 15,556 15,871 15,888 For further information please contact Investor relations Media relations Marina Shchukina +44 (0) 20 7116 2526 Tom 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: +44 (0)371 384 2055 (UK and international telephone number)5. American Depositary Receipts (ADRs) EQ Shareowner Services P.O. Box 64504 St. Paul, MN 55164-0504 United States of America shareowneronline.com Toll Free Number: +1 800-990-1135 Outside the US +1 651-453-2128 Delivery of ADR certificates and overnight mail EQ Shareowner Services, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120-4100, USA. 1 Note that these 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 The number of shares of 15,239m as at 30 September 2023 is different from the 15,220m referenced in the 2 October 2023 announcement entitled "Transaction in Own Shares" because the share buyback transactions executed on 28 and 29 September 2023 did not settle until 2 and 3 October 2023 respectively. 5 Lines open 8.30am to 5.30pm (UK time), Monday to Friday, excluding UK public holidays in England and Wales. This information is provided by RNS, the news service of the London Stock Exchange. 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