barc201210316k.htm
 
UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549
 
 
FORM 6-K
 
 
REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934
 
October 31, 2012
 
Barclays PLC and

Barclays Bank PLC
(Names of Registrants)
 
 
 1 Churchill Place

London E14 5HP
England
(Address of Principal Executive Offices)

 
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.

 
Form 20-F x           Form 40-F

 
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 
Yes           No x

 
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):

 
This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays
Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is
owned by Barclays PLC.

 
This Report comprises:

 
Information given to The London Stock Exchange and furnished pursuant to
General Instruction B to the General Instructions to Form 6-K.


 
 
EXHIBIT INDEX
 
 







 




SIGNATURES

 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 
 
 
 
BARCLAYS PLC
(Registrant)

 
Date: October 31, 2012
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Deputy Secretary
 
 
 
 
BARCLAYS BANK PLC
(Registrant)



Date: October 31, 2012
 
 
By: /s/ Patrick Gonsalves
----------------------
Patrick Gonsalves
Joint Secretary
 



 

   
 
 
Barclays PLC
Interim Management Statement
 
30 September 2012
 

Table of Contents
 
  Interim Management Statement
Page
  Performance Highlights
4
  Barclays Results by Quarter
6
          Group Performance Review
7
          Results by Business
  
       .    UK Retail and Business Banking
10
       .   Europe Retail and Business Banking
11
       .   Africa Retail and Business Banking
12
       .   Barclaycard
13
       .   Investment Bank
14
       .   Corporate Banking
16
       .   Wealth and Investment Management
17
       .   Head Office and Other Operations
18
  Appendix I - Quarterly Results Summary
19
  Appendix II - Margins and Income by Geography
21
  Appendix III - Balance Sheet and Capital
22
  Appendix IV - Group Exposures to Selected Countries
27
  Appendix V - Credit Market Exposures
35
  Appendix VI - Other Legal and Regulatory Matters
36
  Appendix VII - Other Information
37
   
 
 
 
 
BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839
 

Notes
 
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis compares the 9 months to 30 September 2012 to the corresponding 9 months of 2011 and balance sheet comparatives relate to 30 June 2012. 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.
 
Adjusted profit before tax and adjusted performance metrics have been presented to provide a more consistent basis for comparing business performance between periods. Adjusting items are considered to be significant and one-off in nature and hence not representative of the underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; gains on debt buy-backs; impairment and disposal of the investment in BlackRock, Inc.; the provision for Payment Protection Insurance redress payments and claims management costs (PPI redress); the provision for interest rate hedging products redress; goodwill impairments; and gains and losses on acquisitions and disposals. The regulatory penalties relating to the industry-wide investigation into the setting of interbank offered rates have not been excluded from adjusted measures.
 
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial Reporting Standards (IFRS) are explained in the Results glossary that can be accessed at
http://group.barclays.com/about-barclays/investor-relations#institutional-investors.
 
The financial information on which this Interim Management Statement is based, and other data set out in the appendices to this statement, are unaudited and have been prepared in accordance with Barclays previously stated accounting policies described in the 2011 Annual Report.
 
The information in this announcement, which was approved by the Board of Directors on 30 October 2012, does not comprise statutory accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2011, which included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 and 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.
 
For qualifying US and Canadian resident ADR holders, the interim dividend of 1p per ordinary share becomes 4p per ADS (representing four shares). The ADR depositary will mail the interim dividend on 7 December 2012 to ADR holders on the record on 9 November 2012.
 
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 certain of the Group's plans and its current goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "may", "will", "seek", "continue", "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe" or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Group's future financial position, income growth, assets, impairment charges, business strategy, capital ratios, leverage, payment of dividends, projected levels of growth in the banking and financial markets, projected costs, estimates of capital expenditures and plans and objectives for future operations and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic, Eurozone and global economic and business conditions, the effects of continued volatility in credit markets, market related risks such as changes in interest rates and exchange rates, effects of changes in valuation of credit market exposures, changes in valuation of issued notes, the policies and actions of governmental and regulatory authorities (including requirements regarding capital and Group structures and the potential for one or more countries exiting the Euro), changes in legislation, the further development of standards and interpretations under IFRS applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of current and future legal proceedings, the success of future acquisitions and other strategic transactions and the impact of competition - a number of such factors being beyond the Group's control. As a result, the Group's actual future results may differ materially from the plans, goals, and expectations set forth in the Group's forward-looking statements.
 
Any forward-looking statements made herein speak only as of the date they are made. Except as required by the UK Financial Services Authority (FSA), the London Stock Exchange plc (LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in Barclays expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any additional disclosures that Barclays has made or may make in documents it has filed or may file with the LSE and/or the SEC.
 

Performance Highlights
 
"These results demonstrate that we continue to have good momentum in our businesses despite the difficulties we faced through this period. While we have much to do to restore trust among stakeholders, our universal banking franchise remains strong and well positioned. I am proud of how our colleagues have continued to focus on delivering for our customers and clients, and am grateful for our customers' and clients' continued loyalty to Barclays.
 
 
We look forward to closing out 2012 in a strong position, and to sharing more with you in February 2013 about how we intend to make Barclays the 'Go-To' bank for all of our stakeholders."
 
Antony Jenkins, Chief Executive
 
 
 
.   Adjusted profit before tax up 18% to £5,954m for the nine months ended 30 September 2012, with an improvement of 27% in Corporate and Investment Banking
 
.   Statutory profit before tax down 86% to £712m, including an own credit charge of £4,019m (2011: gain of £2,971m), gain on disposal of BlackRock investment of £227m (2011: impairment/loss of £1,858m) and a £1,000m (2011:
       £1,000m) provision for Payment Protection Insurance (PPI) redress, of which £700m was recognised in Q3
 
 
.   Adjusted return on average shareholders' equity increased to 8.8% (2011: 8.4%) with improvements in the majority of our businesses. Statutory return on average shareholders' equity was negative 0.5% (2011: positive 6.9%)
 
 
.   Adjusted income is in line with prior year at £22,347m despite challenging economic conditions, the continuing low interest rate environment and non recurrence of gains from the disposal of hedging instruments in Q3 11
 
 
.   Investment Bank income improved 7% to £9,129m. Q3 12 Investment Bank income was £2,633m, up 17% on Q3 11 but down 13% on the strong Q2 12 performance
 
 
.   Credit impairment charges were down 7% at £2,657m, principally reflecting improvements in the UK businesses, offset by higher charges in the Investment Bank and the RBB businesses in Europe and Africa
 
 
.   Operating expenses, excluding the £1,000m (2011: £1,000m) provision for PPI redress and £450m (2011: nil) provision for interest rate hedging products redress, were down 4% to £13,832m. Non-performance costs reduced 3% to
       £11,837m and performance costs reduced 9% to £1,995m
 
 
.   During Q3 12, sovereign exposures to Spain, Italy, Portugal, Ireland, Greece and Cyprus reduced 15% to £4.8bn. The Group reduced local Euro funding mismatches in Spain by £2.4bn to £0.1bn and in Portugal by £0.4bn to £3.3bn
 
 
.   Core Tier 1 ratio strengthened to 11.2% in Q3 12 (30 June 2012: 10.9%). Risk weighted assets reduced 3% to £379bn, principally reflecting risk reduction in Corporate and Investment Banking and foreign exchange movements,
       partially offset by a change in methodology on loss given default for sovereign exposures
 
 
.   The Group continues to access both secured and unsecured term funding markets and has met its term funding needs for 2012 having raised £22bn of term funding in the first nine months of 2012, including £1bn through Barclays
       participation in the Bank of England's Funding for Lending Scheme
 
 
.   The liquidity pool was £160bn (30 June 2012: £170bn), remaining well above our liquidity risk appetite and within the month end range of £152bn to £173bn for the year to date (Full Year 2011: £140bn to £167bn)
 

 
Performance Highlights
 
Barclays Unaudited Results
 
Adjusted1
  
Statutory
 
 
for the nine months ended
30.09.12
30.09.11
    
30.09.12
30.09.11
  
 
£m
£m
% Change
  
£m
£m
% Change
Total income net of insurance claims
22,347 
22,300 
- 
  
18,555 
25,213 
(26)
Impairment charges and other provisions  
(2,657)
(2,851)
(7)
  
(2,657)
(4,651)
(43)
Net operating income
 
19,690 
19,449 
1 
  
15,898 
20,562 
(23)
Operating expenses
(13,832)
(14,441)
(4)
  
(15,282)
(15,488)
(1)
Other net income/(expense)2 
96 
54 
    
96 
(8)
  
Profit before tax
 
5,954 
5,062 
18 
  
712 
5,066 
(86)
Profit after tax   
4,167 
3,868 
8 
  
374 
3,349 
(89)
               
Performance Measures
              
Return on average shareholders' equity
8.8%
8.4%
    
(0.5%)
6.9%
  
Return on average tangible shareholders' equity
10.3%
10.1%
    
(0.6%)
8.3%
  
Return on average risk weighted assets
1.4%
1.3%
    
0.1%
1.1%
  
Cost: income ratio
62%
65%
    
82%
61%
  
Loan loss rate
69bps
74bps
    
69bps
74bps
  
               
Basic earnings per share
 
29.3p
26.5p
    
(1.7p)
22.2p
  
Dividend per share
 
3.0p
3.0p
    
3.0p
3.0p
  
   
              
Capital and Balance Sheet
 
        
30.09.12
30.06.12
% Change
Core Tier 1 ratio  
        
11.2%
10.9%
  
Risk weighted assets  
        
£379bn
£390bn
(3)
Adjusted gross leverage
        
20x
20x
- 
Group liquidity pool  
        
£160bn
£170bn
(6)
Net asset value per share  
        
444p
443p
- 
Net tangible asset value per share  
        
379p
379p
- 
Loan: deposit ratio  
        
111%
111%
  
               
 
 
 
Adjusted1
  
Statutory
 
 
Profit/(Loss) Before Tax by Business
30.09.12
30.09.11
    
30.09.12
30.09.11
  
 
£m
£m
% Change
  
£m
£m
% Change
UK
1,146 
1,198 
(4)
  
296 
798 
(63)
Europe
(151)
(109)
39 
  
(151)
(109)
39 
Africa
330 
561 
(41)
  
330 
563 
(41)
Barclaycard
1,150 
949 
21 
  
1,000 
302 
231 
Retail and Business Banking
2,475 
2,599 
(5)
  
1,475 
1,554 
(5)
Investment Bank
3,205 
2,698 
19 
  
3,205 
2,698 
19 
Corporate Banking
444 
167 
166 
  
(6)
103 
  
Corporate and Investment Banking
3,649 
2,865 
27 
  
3,199 
2,801 
14 
Wealth and Investment Management
200 
153 
31 
  
200 
153 
31 
Head Office and Other Operations
(370)
(555)
(33)
  
(4,162)
558 
  
Total profit before tax
5,954 
5,062 
18 
  
712 
5,066 
(86)
 
 
 
 
 
 
 
 
 
 
 
 
      
1   Adjusted performance measures and profit before tax exclude the impact of an own credit charge of £4,019m (2011: gain of £2,971m), gain on disposal of strategic investment in BlackRock, Inc. of £227m (2011: loss of £58m),
     impairment of investment in BlackRock Inc. of £nil (2011: £1,800m), provision for PPI redress of £1,000m (2011: £1,000m), provision for interest rate hedging products redress of £450m (2011: £nil), gains on acquisitions
     and disposals of £nil (2011: loss of £62m) and goodwill impairment of £nil (2011: £47m).
2   Comprises: share of post-tax results of associates and joint ventures; profit or loss on disposal of subsidiaries, associates and joint ventures; and gains on acquisitions.
 

Barclays Results by Quarter
 
Barclays Results by Quarter
Q312
Q212
Q112
  
Q411
Q311
Q211
Q111
 
£m
£m
£m
  
£m
£m
£m
£m
Adjusted basis
 
                
Total income net of insurance claims  
6,872 
7,337 
8,138 
  
6,212 
7,001 
7,549 
7,750 
Credit impairment charges and other provisions  
(825)
(1,054)
(778)
  
(951)
(1,023)
(907)
(921)
Net operating income
 
6,047 
6,283 
7,360 
  
5,261 
5,978 
6,642 
6,829 
Operating expenses (excluding UK bank levy) 1 
(4,341)
(4,542)
(4,949)
  
(4,414)
(4,659)
(4,940)
(4,842)
UK bank levy  
- 
- 
- 
  
(325)
- 
- 
- 
Other net income
21 
41 
34 
  
6 
18 
19 
17 
Adjusted profit before tax
 
1,727 
1,782 
2,445 
  
528 
1,337 
1,721 
2,004 
                 
Adjusting items
 
                
Own credit  
(1,074)
(325)
(2,620)
  
(263)
2,882 
440 
(351)
Gains on debt buy-backs  
- 
- 
- 
  
1,130 
- 
- 
- 
Impairment and gain/(loss) on disposal of BlackRock investment
- 
227 
- 
  
- 
(1,800)
(58)
- 
Provision for PPI redress1 
(700)
- 
(300)
  
- 
- 
(1,000)
- 
Provision for interest rate hedging products redress
- 
(450)
- 
  
- 
- 
- 
- 
Goodwill impairment  
- 
- 
- 
  
(550)
- 
(47)
- 
(Losses)/gains on acquisitions and disposals  
- 
- 
- 
  
(32)
3 
(67)
2 
Statutory (loss)/profit before tax
(47)
1,234 
(475)
  
813 
2,422 
989 
1,655 
Statutory (loss)/profit after tax
(106)
817 
(337)
  
602 
1,366 
742 
1,241 
   
                
Adjusted basic earnings per share  
7.5p
8.2p
13.6p
  
1.2p
6.9p
8.9p
10.7p
Adjusted cost: income ratio  
63%
62%
61%
  
76%
67%
65%
62%
Basic earnings per share  
(2.3p)
5.1p
(4.5p)
  
2.9p
9.7p
4.0p
8.5p
Cost: income ratio  
87%
69%
95%
  
75%
47%
75%
65%
                 
 
 
Adjusted Profit/(Loss) Before Tax by Business
Q312
Q212
Q112
  
Q411
Q311
Q211
Q111
 
£m
£m
£m
  
£m
£m
£m
£m
UK
400 
412 
334 
  
222 
494 
416 
288 
Europe
(59)
(49)
(43)
  
(125)
52 
(102)
(59)
Africa
56 
97 
177 
  
269 
219 
195 
147 
Barclaycard
397 
404 
349 
  
259 
378 
275 
296 
Retail and Business Banking
794 
864 
817 
  
625 
1,143 
784 
672 
Investment Bank
937 
1,002 
1,266 
  
267 
388 
977 
1,333 
Corporate Banking
98 
127 
219 
  
37 
113 
33 
21 
Corporate and Investment Banking
1,035 
1,129 
1,485 
  
304 
501 
1,010 
1,354 
Wealth and Investment Management
79 
61 
60 
  
54 
65 
42 
46 
Head Office and Other Operations
(181)
(272)
83 
  
(455)
(372)
(115)
(68)
Total profit before tax
1,727 
1,782 
2,445 
  
528 
1,337 
1,721 
2,004 
                 
 
 
 
 
 
 
 
  
1   The Q3 12 £700m provision for PPI redress includes claims management costs of £52m relating to Q2 12: £28m and Q1 12: £24m, previously recorded within operating expenses as a non-adjusting item.
 

Group Performance Review
 
For the first nine months of 2012 we reported a good performance as adjusted profits increased 18% year on year. Our Core Tier 1 ratioimproved to 11.2%, while funding and liquidity remained strong.
 
Income Statement
 
 
.   Adjusted profit before tax increased 18% to £5,954m. Adjusted results provide a more consistent basis for comparing business performance between periods
 
 
.   Statutory profit before tax down 86% to £712m, including an own credit charge of £4,019m (2011: gain of £2,971m) and a £1,000m (2011: £1,000m) provision for PPI redress
 
 
.   Adjusted return on average shareholders' equity increased to 8.8% (2011: 8.4%) with improvements in UK RBB, Barclaycard, Investment Bank, Corporate Banking and Wealth and Investment Management
 
 
.   Adjusted income was flat at £22,347m despite challenging economic conditions, the continuing low interest rate environment and non-recurrence of gains of £1,000m from the disposal of hedging instruments in Q3 11
 
 
.   Customer net interest income for Retail and Business Banking, Corporate Banking and Wealth and Investment Management was stable at £7,345m. Total net interest income reduced 9% to £8,334m and the net interest margin 
       declined 23bps to 186bps, principally reflecting the non recurrence of gains from the disposal of hedging instruments in Q3 11
 
   
.   Total income in the Investment Bank increased 7% to £9,129m driven by increases in Fixed Income, Currencies and Commodities (FICC), and Equities
 
 
.   Credit impairment charges were down 7% at £2,657m, principally reflecting improvements in UK RBB, Barclaycard and Corporate Banking. This was partially offset by higher charges in the Investment Bank, driven by ABS CDO
       Super Senior positions, higher losses on single name exposures and a non-recurring release of £223m in 2011; as well as increases in Europe RBB and Africa RBB
 
 
.   The annualised loan loss rate reduced to 69bps (2011: 74bps)
 
 
.   During 2012, delinquency trends have improved in our main cards portfolios and UK unsecured lending, however, weak local economic conditions have led to some deterioration in the European home loan portfolios
 
 
.   While a number of credit metrics in the wholesale portfolios have shown some improvement during 2012, the challenging conditions in Europe have lead to some deterioration to metrics in Corporate Europe
 
 
.   The credit risk loans (CRL) coverage ratio increased to 51.0% (30 June 2012: 50.4%) as CRL balances and impairment allowances fell 3.1% and 1.8%, respectively during Q3 12
 
 
.   Operating expenses, excluding the provision for PPI redress of £1,000m (2011: £1,000m) and  provision for interest rate hedging products redress of £450m (2011: nil), were down 4% to £13,832m
 
 
.   Non-performance costs decreased 3% to £11,837m after absorbing regulatory penalties of £290m relating to the industry-wide investigation into the setting of interbank offered rates. Cost reductions from management cost saving
       initiatives, business restructuring and foreign exchange movements, more than offset the impact of continued business investment, including 2011 acquisitions, and increased Financial Services Compensation Scheme costs
 
  
.   Performance costs reduced 9% to £1,995m despite an increase in the charge for bonuses deferred from prior years to £942m (2011: £751m). The Investment Bank compensation: income ratio reduced to 39% (2011: 46%)
 
 
.   2012 bonus pool awards have not yet been granted as discretionary incentive award decisions are not taken by the Remuneration Committee until the performance for the full year can be assessed. The current year bonus charge
        represents an accrual for estimated costs in accordance with accounting requirements
 
 
.   The adjusted cost: income ratio decreased to 62% (2011: 65%). The Investment Bank cost: net operating income ratio improved to 64% (2011: 68%)
 
 
.   Since the end of the first half 2012 Barclays has experienced higher than previously anticipated levels of PPI claim volumes, and has therefore determined that it is appropriate to provide a further £700m for PPI redress as at
       30 September 2012. This is in addition to provisions recognised of £1bn in 2011 and £300m in Q1 12. Based on claims experience to date and anticipated future volumes, the resulting provision includes Barclays best estimate of
       expected future PPI redress payments and claims management costs. Barclays will continue to monitor actual claims volumes and the assumptions underlying the calculation of its PPI provision
 

 
Group Performance Review
 
Balance Sheet
 
 
.   During Q312 total loans and advances remained stable at £502bn (30 June 2012: £504bn) with increases in UK mortgage lending being offset by reductions in lending in Europe RBB and Corporate Bank
 
 
.   The Group's loan to deposit ratio was stable at 111% (30 June 2012: 111%), with both loans and advances to customers and customer deposits flat at £452.9bn and £407.3bn respectively
 
 
.   Total assets reduced 2% to £1,599bn, principally reflecting lower derivative assets and reductions in cash and balances at central banks partially offset by increases in reverse repurchase agreements and other similar secured
       lending
 
 
.   Total shareholders' equity, including non-controlling interests, remained at £63.7bn, principally reflecting increases in the value of available for sale debt investments of £0.6bn and cash flow hedges of £0.4bn, offset by £0.7bn
       negative currency translation differences due to depreciation of US dollar and South African Rand against Sterling, and dividends paid during the quarter of £0.3bn. After allowing for non-controlling interests, principally
       preference shares and Absa Group minority interests, satutory profit attributable to equity shareholders of the parent reduced to negative £0.2bn(2011: £2.7bn profit)
 
 
.   Net asset value per share was 444p (30 June 2012: 443p) and the net tangible asset value per share remained at 379p
 
 
.   Adjusted gross leverage remained stable at 20x and during Q3 moved within a month end range of 20x to 21x. Excluding the liquidity pool, adjusted gross leverage remained flat at 17x
 
Capital Management
 
 
.   The Core Tier 1 ratio increased to 11.2% (30 June 2012: 10.9%), reflecting a broadly stable Core Tier 1 equity at £42.5bn and a 3% reduction in risk weighted assets to £379bn, principally reflecting risk reduction in the Corporate
       and Investment Bank and foreign exchange movements. The benefit of risk reduction was partially offset by increases from adopting revised guidance from the FSA requiring higher loss given default assumptions on sovereign
       exposures
 
 
.   Barclays generated £0.7bn Core Tier 1 capital from earnings in Q3, after absorbing the impact of the additional provision for PPI redress and the Group's quarterly interim dividend. The increase from earnings was offset by a
       £0.6bn reduction in reserves due to foreign exchange movements, which for the Core Tier 1 ratio was matched by a broadly offsetting £5.2bn foreign exchange reduction in risk weighted assets
 
 
.   The EU was due to finalise the requirements of CRD IV by July 2012, in order to implement Basel 3 by 1 January 2013. However, there are a number of areas still under consideration and the European Parliament is not due to
       consider the final proposals until November 2012. While the expectation is that CRD IV will be delayed, in the absence of official guidance we are continuing to progress implementation activities in line with the original timetable
 
Funding and Liquidity
 
 
.   The liquidity pool was £160bn (30 June 2012: £170bn), remaining well above our liquidity risk appetite and within the month end range of £152bn to £173bn for the year to date (Full Year 2011: £140bn to £167bn). We have also
       taken steps to realign the composition of the pool to reduce the cost of liquidity, in particular moving funds from deposits with central banks into government bonds1
 
 
 
 
Liquidity Pool
Cash and Deposits
with Central Banks2 
Government
Bonds1 
Other Available
Liquidity
Total3 
 
£bn
£bn
£bn
£bn
As at 30.09.12
99 
41 
20 
160 
As at 30.06.12
124 
32 
14 
170 
 
 
.   RBB, Corporate Banking and Wealth and Investment Management activities are largely funded by customer deposits with the remaining funding secured against customer loans and advances. At Q3, the customer loan to deposit
       ratio for these businesses was 104% (30 June 2012: 106%, 31 December 2011: 111%) and the customer loan to deposit and secured funding ratio was 91% (30 June 2012: 94%, 31 December 2011:101%)
 
 
 
 
 
 
1        Of which over 75% (30 June 2012: over 70%) of securities are comprised of United Kingdom, United States, Japan, France, Germany, Denmark and the Netherlands.
 
2       Of which over 95% is placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National Bank.
 
3        £135bn (30 June 2012: £149bn) of which is FSA eligible.
 

 
Group Performance Review
 
 
.   The Investment Bank's activities are primarily funded through wholesale markets. As at 30 September 2012, total wholesale funding outstanding (excluding repurchase agreements) was £253bn (30 June 2012: £263bn), of which
       £113bn matures in less than one year (30 June 2012: £118bn) and £39bn matures within one month (30 June 2012: £42bn)
 
 
.   Barclays has met its term funding needs for the period to the end of 2012. In the first 9 months of 2012, the funding requirement has reduced with the improvement in the customer loan to deposit ratio, and the Group has raised
       £22bn of term funding, including £1bn through Barclays participation in the Bank of England's Funding for Lending Scheme. The Group has £27bn of term funding maturing during 2012
 
Exposures to Selected Eurozone Countries
 
 
.   During Q3 12, sovereign exposures to Spain, Italy, Portugal, Ireland, Greece and Cyprus reduced by 15% to £4.8bn
 
 
.   Retail loans and advances in Spain, Italy and Portugal decreased 3% to £38.5bn, while lending to corporates decreased 19% to £8.2bn reflecting continued prudent risk management of portfolios. The 90 day arrears rates for the
       significant residential mortgage portfolios in Spain and Italy remained stable during Q3 12
 
 
.   During Q3 12, mitigating actions were taken to reduce local net funding mismatches in particular through the attraction of corporate deposits in Spain and reducing corporate lending in Spain and Portugal. As a result, the
       aggregate net local balance sheet funding mismatch reduced from £2.5bn to £0.1bn in Spain and from £3.7bn to £3.3bn in Portugal. In Italy the net funding mismatch reduced from £11.9bn to £9.6bn
 
Citizenship
 
 
.   Provided £32.4bn (2011:£32.8bn) of gross new lending to UK households and businesses during 2012
 
 
.   We are committed to passing on the full funding benefit from the Funding for Lending Scheme to our customers. As part of this we have launched Cashback for Business, offering 2% cashback on loans for small and medium-
       sized enterprises in the UK
 
  
.   We supported 84,000 start-up businesses in the UK, the highest in a 9 month period since 1988
 
 
.   We raised £628bn of financing for businesses and governments globally
 
 
.   We provided 280 new UK apprenticeships, demonstrating good progress towards our commitment of at least 1,000 apprenticeships by June 2013
 
Dividends
 
.   It is our policy to declare and pay dividends on a quarterly basis. We will pay a third interim cash dividend for 2012 of 1p per share on 7 December 2012
 
Outlook
 
 
.   Performance during October continues to be affected by the challenging economic environment and subdued market volumes. We continue to be cautious about the environment in which we operate and have positioned the Bank
       accordingly with an intense focus on costs, returns and capital. We remain confident in the strength of our market positions, our robust risk management and the benefits of our universal banking model
 

Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
UK RBB
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted basis
      
Total income net of insurance claims
3,335 
3,527 
(5)
Credit impairment charges and other provisions
(198)
(380)
(48)
Net operating income
3,137 
3,147 
-
Operating expenses
(1,991)
(1,950)
2 
Other net income
- 
1 
  
Adjusted profit before tax
1,146 
1,198 
(4)
       
Adjusting items
      
Provision for PPI redress
(850)
(400)
  
Statutory profit before tax
296 
798 
(63)
       
Performance Measures
      
Adjusted return on average equity
16.9%
16.7%
  
Adjusted return on average risk weighted assets
3.3%
3.3%
  
Adjusted cost: income ratio
60%
55%
  
Return on average equity
4.4%
11.0%
  
Return on average risk weighted assets
0.9%
2.2%
  
Cost: income ratio
85%
67%
  
Loan loss rate (bps)
21 
42 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to customers at amortised cost
£126.0bn
£123.4bn
  
Customer deposits
£114.5bn
£113.9bn
  
 
2012 compared to 2011
 
 
.   Adjusted profit before tax decreased 4% to £1,146m. Statutory profit before tax was £296m (2011: £798m) after £850m (2011: £400m) provision for PPI redress, including claims management costs
 
        -     Solid growth in new mortgage lending and customer deposits more than offset by higher funding costs and reduced structural hedge contribution
 
        -     Reduction in impairment principally in personal unsecured lending
 
 
.   Income declined 5% to £3,335m reflecting higher funding costs and reduced contribution from structural hedges in particular non recurrence of gains from the disposal of hedging instruments in Q3 11
 
 
.   Credit impairment charges decreased 48% to £198m reflecting improvements across all portfolios, principally in personal unsecured lending
 
        -     Loan loss rate reduced to 21bps (2011: 42bps)
 
        -      90 day arrears rates on UK Personal Loans improved by 43bps to 1.35%
 
 
.   Operating expenses, excluding the PPI provision and claims management costs, increased 2% to £1,991m
 
Q3 12 compared to Q2 12
 
.   Adjusted profit before tax decreased 3% to £400m, principally reflecting a non recurring impairment release in Q2 12. Statutory loss before tax of £150m (Q212: profit of £412m) reflecting an additional £550m provision for PPI
       redress
 
.   Loans and advances to customers increased 2% to £126.0bn reflecting solid growth in mortgage balances. Customer deposits continued to grow to £114.5bn (30 June 2012: £113.9bn)
 
.   Plans have been announced to acquire from ING Direct UK a deposit book with balances of £10.9bn and a mortgage book with outstanding balances of £5.6bn (as at 31 August 2012). The mortgage book had a loan to value ratio
      of 50% and is being acquired at an approximate 3% discount. The deposit book is being acquired at par. Completion is subject to regulatory approval and is expected to occur early in Q2 13
 

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Europe RBB
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
705 
979 
(28)
Credit impairment charges and other provisions
(233)
(178)
31 
Net operating income
472 
801 
(41)
Operating expenses
(632)
(920)
(31)
Other net income
9 
10 
  
Adjusted and statutory loss before tax
(151)
(109)
39 
       
Performance Measures
      
Return on average equity
(7.6%)
(3.9%)
  
Return on average risk weighted assets
(1.0%)
(0.6%)
  
Cost: income ratio
90%
94%
  
Loan loss rate (bps)
76 
52 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to customers at amortised cost
£40.1bn
£41.2bn
  
Customer deposits
£18.1bn
£18.4bn
  
 
2012 compared to 2011
 
 
.   Loss before tax increased 39% to £151m
 
        -     Decrease in income reflecting the challenging economic environment in Europe
 
        -     Offset by lower costs following restructuring charges in 2011 and subsequent cost savings
 
 
.   Income declined 28% to £705m reflecting lower volumes, reduced margins and non recurrence of gains from the disposal of hedging instruments in Q3 11
 
 
.   Credit impairment charges increased 31% to £233m due to deterioration in credit performance across Europe reflecting current economic conditions
 
        -     Loan loss rate increased to 76bps (2011: 52bps)
 
        -      90 day arrears rates for home loans deteriorated by 12bps to 0.83% reflecting deterioration across all countries, most notably in Spain
 
 
.   Operating expenses decreased 31% to £632m reflecting restructuring charges of £129m in 2011 and related cost savings
 
Q3 12 compared to Q2 12
 
 
.   Loss before tax increased by £10m to £59m driven by a decline in income reflecting the challenging economic environment in Europe, partially offset by cost savings
 
 
.   Loans and advances to customers decreased 3% to £40.1bn reflecting the strategy to reduce the net funding mismatch. Customer deposits decreased 2% to £18.1bn principally reflecting competitive pricing pressures
 

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Africa RBB
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted basis
      
Total income net of insurance claims
2,390 
2,710 
(12)
Credit impairment charges and other provisions
(501)
(378)
33 
Net operating income
1,889 
2,332 
(19)
Operating expenses
(1,564)
(1,774)
(12)
Other net income
5 
3 
  
Adjusted profit before tax
330 
561 
(41)
       
Adjusting items
      
Gains on acquisitions and disposals
- 
2 
  
Statutory profit before tax
330 
563 
(41)
       
Performance Measures
      
Adjusted return on average equity
4.9%
9.6%
  
Adjusted return on average risk weighted assets
0.9%
1.6%
  
Return on average equity
4.9%
9.7%
  
Return on average risk weighted assets
0.9%
1.6%
  
Cost: income ratio
65%
65%
  
Loan loss rate (bps)
197 
138 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to customers at amortised cost
£32.5bn
£34.1bn
  
Customer deposits
£21.9bn
£22.3bn
  
 
2012 compared to 2011
 
 
.   Profit before tax decreased 41% to £330m
 
 
       -     Higher credit impairment charges primarily in South African home loans recovery book
 
 
       -     Adverse currency movements reflecting depreciation of major African currencies against Sterling
 
 
.   Income declined 12% to £2,390m principally reflecting currency movements and non recurrence of gains from the disposal of Group hedging instruments in Q3 11
 
 
        -     Excluding the impact of currency movements income is broadly in line
 
 
.   Credit impairment charges increased 33% to £501m principally reflecting higher loss given default rates and higher levels of write-offs in the South African home loans recovery book
 
 
        -      Loan loss rate increased to 197bps (2011: 138bps)
 
   
        -      However 90 day arrears rate for home loans improved by 100bps to 2.20% reflecting improved new business and continuing low interest rate environment
 
 
.   Operating expenses decreased by 12% to £1,564m reflecting currency movements and reduced costs in local currency
 
Q3 12 compared to Q2 12
 
 
.   Profit before tax decreased 42% to £56m mainly reflecting higher operating costs driven by the timing of staff related and investment spend, while impairment charges in the South African home loans recovery book remained
       elevated
 
.   Loans and advances to customers decreased 5% to £32.5bn reflecting adverse currency movements. Customer deposits decreased 2% to £21.9bn reflecting currency movements, partially offset by growth in local currency
       deposits in South Africa
 

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Barclaycard
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted basis
      
Total income net of insurance claims
3,072 
3,112 
(1)
Credit impairment charges and other provisions
(714)
(988)
(28)
Net operating income
2,358 
2,124 
11 
Operating expenses
(1,232)
(1,201)
3 
Other net income
24 
26 
  
Adjusted profit before tax
1,150 
949 
21 
       
Adjusting items
      
Provision for PPI redress
(150)
(600)
  
Goodwill impairment
- 
(47)
  
Statutory profit before tax
1,000 
302 
231 
       
Performance Measures
      
Adjusted return on average equity
22.7%
18.4%
  
Adjusted return on average risk weighted assets
3.4%
2.8%
  
Adjusted cost: income ratio
40%
39%
  
Return on average equity
19.5%
4.3%
  
Return on average risk weighted assets
2.9%
0.8%
  
Cost: income ratio
45%
59%
  
Loan loss rate (bps)
291 
423 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to customers at amortised cost
£30.9bn
£30.6bn
  
Customer deposits
£2.4bn
£2.0bn
  
 
2012 compared to 2011
 
 
.   Adjusted profit before tax improved 21% to £1,150m. Statutory profit before tax was £1,000m (2011: £302m) after £150m (2011: £600m) provision for PPI redress, including claim management costs, and goodwill impairment in 2011
 
 
        -     Solid profit growth within the UK and International businesses
 
 
        -      Lower impairment reflecting improved delinquency performances
 
 
        -       Strong returns with adjusted return on average equity improving to 22.7% (2011: 18.4%)
 
 
.   Income remained in line with prior year at £3,072m (2011: £3,112m) reflecting continued growth across the business and contributions from 2011 portfolio acquisitions, offset by higher funding costs and non recurrence of gains
       from the disposal of hedging instruments in Q3 11
 
 
.   Credit impairment charges decreased 28% to £714m reflecting lower charges in the European and US cards portfolios, driven by improved delinquency performances
 
 
        -      Loan loss rate reduced to 291bps (2011: 423bps)
 
 
        -      30 day arrears rates for consumer cards in UK down 26bps to 2.46%, in the US down 76bps to 2.48% and in South Africa down 13bps to 4.93%
 
 
.   Operating expenses, excluding the PPI provision and claims management costs, increased 3% to £1,232m reflecting portfolio acquisitions and investment spend
 
Q3 12 compared to Q2 12
 
 
.   Adjusted profit before tax decreased 2% to £397m reflecting a non recurring impairment release in Q2 12. Profit before tax reduced £157m to £247m, reflecting an additional £150m provision for PPI redress
 
 
.   Loans and advances to customers increased 1% to £30.9bn. Customer deposits increased £0.4bn to £2.4bn through deposit funding initiatives in the US and Germany

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Investment Bank
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted and statutory basis
      
Fixed Income, Currency and Commodities
5,945 
5,354 
11 
Equities and Prime Services  
1,507 
1,446 
4 
Investment Banking  
1,497 
1,521 
(2)
Principal Investments  
180 
196 
(8)
Total income
9,129 
8,517 
7 
Credit impairment charges and other provisions
(346)
(3)
  
Net operating income
8,783 
8,514 
3 
Operating expenses
(5,613)
(5,831)
(4)
Other net income
35 
15 
  
Adjusted profit before tax and profit before tax
3,205 
2,698 
19 
       
Performance Measures
      
Return on average equity
14.2%
12.0%
  
Return on average risk weighted assets
1.6%
1.3%
  
Cost: income ratio
61%
68%
  
Cost: net operating income ratio
64%
68%
  
Compensation: income ratio
39%
46%
  
Loan loss rate (bps)
24 
3 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to banks and customers at amortised cost
£186.2bn
£185.9bn
  
Customer deposits
£105.9bn
£114.5bn
  
Assets contributing to adjusted gross leverage
£628.2bn
£650.4bn
  
Risk weighted assets
£180.4bn
£190.6bn
  
 
2012 compared to 2011
 
 
.   Profit before tax increased 19% to £3,205m, primarily driven by income growth of 7% and a reduction in operating expenses of 4% despite a £193m charge relating to the Investment Banking allocation of the £290m penalty arising
       from the industry wide investigation into the setting of inter-bank offered rates
 
 
.   Total income increased 7% to £9,129m
 
 
.   Fixed Income, Currency and Commodities (FICC) income improved 11% to £5,945m, reflecting higher contributions from the Rates, Commodities and Emerging Markets businesses, partially offset by lower contributions from
       Foreign Exchange
 
 
.   Equities and Prime Services income increased 4% to £1,507m, reflecting improved performance in cash equities, despite subdued market volumes
 
 
.   Investment Banking income was comparable to 2011 at £1,497m, with improved performance in financial advisory offset by reduced performance in equity underwriting given lower deal activity.  Debt underwriting revenues were
       in line with the prior year
 
 
.   Credit impairment charges of £346m (2011: £3m) primarily related to ABS CDO Super Senior positions and higher losses on single name exposures in H1 12. The prior year included a non recurring release of £223m
 
 
.   Operating expenses decreased 4% to £5,613m, due to an 11% decline in total performance costs to £1,384m. Non-performance costs also decreased 1% to £4,229m whilst absorbing the £193m charge relating to the setting of inter-
       bank offered rates
 
 
.   Cost to net operating income ratio of 64% (2011: 68%) within target range of 60% to 65%. The compensation to income ratio improved to 39% (2011: 46%)
 
 
.   Return on average equity of 14.2% (2011: 12.0%) and return on average risk weighted assets of 1.6% (2011: 1.3%)
 

 
Results by Business
 
Q3 12 compared to Q2 12
 
 
.   Profit before tax decreased 6% to £937m, with a 13% reduction in income partially offset by credit impairment charges decreasing to £23m (Q2 12: £248m). Operating expenses decreased 6% on the prior quarter driven by reduced
       non-performance costs
 
 
.   Total income of £2,633m was down 13% on the strong performance in Q2 12 reflecting a reduction in FICC income of 20%, partially offset by a 26% increase in Equities and Prime Services. Investment Banking revenues were
       comparable to the prior quarter
 
 
.   Assets contributing to adjusted gross leverage decreased 3% to £628bn reflecting decreases in cash and balances at central banks and trading portfolio assets, partially offset by an increase in reverse repurchase agreements
 
 
.   Risk weighted assets decreased 5% to £180bn driven by business risk reductions, which includes legacy sell downs, and foreign exchange movements. The benefit of risk reduction was partially offset by increases from adopting
       revised guidance from the FSA requiring higher loss given default assumptions on sovereign exposures
 
 
Q3 12 compared to Q3 11
 
 
.   Profit before tax increased 141% to £937m driven by a 17% increase in income and a significant reduction in credit impairment charges. Operating expenses decreased 4%, with a reduction of 9% in non-performance costs, more
       than offsetting an increase in the charge for bonuses deffered from prior years
 
 
.   Total income was up 17% reflecting improved performance in FICC by 10%, Equities and Prime Services by 58% and Investment Banking by 25%
 

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Corporate Banking
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted basis
      
Total income net of insurance claims
2,205 
2,398 
(8)
Credit impairment charges and other provisions
(635)
(895)
(29)
Net operating income
1,570 
1,503 
4 
Operating expenses
(1,130)
(1,337)
(15)
Other net income
4 
1 
  
Adjusted profit before tax
444 
167 
166 
       
Adjusting items
      
Provision for interest rate hedging products redress
(450)
- 
  
Losses on disposal of Barclays Bank Russia
- 
(64)
  
Statutory (loss)/profit before tax
(6)
103 
(106)
       
Adjusted profit/(loss) before tax by geographic segment
      
UK
681 
592 
15 
Europe
(290)
(434)
(33)
Rest of the World
53 
9 
  
Corporate Banking
444 
167 
166 
       
Performance Measures
      
Adjusted return on average equity
5.6%
2.1%
  
Adjusted return on average risk weighted assets
0.6%
0.3%
  
Adjusted cost: income ratio
51%
56%
  
Return on average equity
(0.7%)
1.0%
  
Return on average risk weighted assets
(0.0%)
0.1%
  
Cost: income ratio
72%
56%
  
Loan loss rate (bps)
126 
164 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to customers at amortised cost
£62.1bn
£64.0bn
  
Loans and advances to customers at fair value
£17.5bn
£17.3bn
  
Customer deposits
£91.4bn
£88.5bn
  
2012 compared to 2011
 
 
.   Adjusted profit before tax improved £277m to £444m, including a gain of £61m (2011: loss of £72m) on the net valuation of fair value loans. Statutory loss before tax was £6m (2011: £103m profit), after charging £450m provision for
       interest rate hedging products redress
 
 
       -      UK adjusted profit before tax improved 15% to £681m reflecting the gains on fair value loans and improved credit impairment partially offset by increased funding costs. UK statutory profit before tax decreased £361m to
              £231m after a £450m provision for interest rate hedging products redress
 
 
       -      Europe loss before tax improved £144m to £290m principally due to reduced credit impairment charges in Spain of £271m (2011: £415m), although credit conditions remain challenging, and improved operating expenses
              benefiting from progress in restructuring businesses
 
 
       -      Rest of the World adjusted profit before tax improved £44m to £53m reflecting lower operating expenses following the prior year restructuring and disposal of Barclays Bank Russia (BBR). Rest of the World statutory profit 
              before tax improved £108m to £53m reflecting the prior year loss on disposal of BBR
 
Q3 12 compared to Q2 12
 
.   Adjusted profit before tax declined 23% to £98m with lower income following restructuring certain non-UK businesses. Statutory profit before tax improved £421m to £98m, reflecting the £450m provision for interest rate hedging
       products redress in Q2 12
 
 
.   Loans and advances to customers declined 3% to £62.1bn reflecting significant progress in restructuring businesses in Europe. Customer deposits increased 3% to £91.4bn primarily driven by growth in the UK

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Wealth and Investment Management
30.09.12
30.09.11
  
 
£m
£m
% Change
Adjusted and statutory basis
      
Total income net of insurance claims
1,334 
1,295 
3 
Credit impairment charges and other provisions
(25)
(31)
(19)
Net operating income
1,309 
1,264 
4 
Operating expenses
(1,109)
(1,109)
- 
Other net expense
- 
(2)
  
Adjusted profit before tax and profit before tax
200 
153 
31 
       
Performance Measures
      
Return on average equity
11.2%
10.7%
  
Return on average risk weighted assets
1.6%
1.5%
  
Cost: income ratio
83%
86%
  
Loan loss rate (bps)
16 
22 
  
       
Balance Sheet Information
30.09.12
30.06.12
  
Loans and advances to customers at amortised cost
£19.9bn
£19.8bn
  
Customer deposits
£52.2bn
£50.0bn
  
Total client assets
£177.6bn
£176.1bn
  
 
2012 compared to 2011
 
 
.   Profit before tax increased 31% to £200m
 
 
        -       Continue to execute strategic investment programme with a focus on building productive capacity and delivering a step change in the client experience
 
 
.   Income increased by 3% to £1,334m driven by the High Net Worth businesses
 
 
.   Operating expenses were flat as the continued cost of the strategic investment programme was offset by cost control initiatives
 
Q3 12 compared to Q2 12
 
 
.   Profit before tax increased 30% to £79m, principally due to reduced operating expenses
 
 
.   Client assets increased 1% to £177.6bn (30 June 2012: £176.1bn) principally reflecting net new assets in High Net Worth businesses
 
 
.   Loans and advances to customers increased 1% to £19.9bn. Customer deposits increased 4% to £52.2bn
 

 
Results by Business
 
 
Nine Months Ended
Nine Months Ended
  
Head Office and Other Operations
30.09.12
30.09.11
  
 
£m
£m
  
Adjusted basis
      
Total income net of insurance claims
177 
(238)
  
Credit impairment charges and other provisions
(5)
2 
  
Net operating income
172 
(236)
  
Operating expenses
(561)
(319)
  
Other net income
19 
- 
  
Adjusted loss before tax
(370)
(555)
  
       
Adjusting items
      
Own credit
(4,019)
2,971 
  
Impairment and gain/(loss) on disposal of BlackRock investment
227 
(1,858)
  
Statutory (loss)/profit before tax
(4,162)
558 
  
 
2012 compared to 2011
 
 
.   Adjusted loss before tax improved 33% to £370m
 
 
       -     Adjusted income improved to £177m (2011: loss of £238m), principally due to changes in the value of hedges relating to employee share awards. These were closed out during Q1 12
 
 
       -       Operating expenses increased to £561m (2011: £319m) due to higher costs relating to the Financial Services Compensation Scheme and a £97m charge relating to the allocation to Head Office and Other Operations of the 
               £290m penalty arising from the industry wide investigation into the setting of interbank offered rates
 
 
.   Statutory loss before tax was £4,162m (2011: £558m profit), including ans pwn credit charge of £4,019m (2011: £2,971m gain) partially offset by the impact of the BlackRock investment disposal
 
Q3 12 compared to Q2 12
 
 
.   Q3 12 adjusted loss before tax improved to £181m (Q2 12: £272m) due to a £115m reduction in operating expenses reflecting non recurrence of the penalty arising from the investigation into interbank offered rates recognised in
       Q2 12
 
 
 

 
Appendix I - Quarterly Results Summary
 

UK RBB
Q312
Q212
Q112
  
Q411
Q311
Q211
Q111
 
£m
£m
£m
  
£m
£m
£m
£m
Adjusted basis
 
                
Total income net of insurance claims  
1,130 
1,128 
1,077 
  
1,129 
1,273 
1,170 
1,084 
Credit impairment charges and other provisions  
(76)
(46)
(76)
  
(156)
(105)
(131)
(144)
Net operating income  
1,054 
1,082 
1,001 
  
973 
1,168 
1,039 
940 
Operating expenses 1 
(654)
(671)
(666)
  
(752)
(675)
(622)
(653)
Other net income/(expense)
- 
1 
(1)
  
1 
1 
(1)
1 
Adjusted profit before tax  
400 
412 
334 
  
222 
494 
416 
288 
                 
Adjusting items
 
                
Provision for PPI redress 1 
(550)
- 
(300)
  
- 
- 
(400)
- 
Statutory (loss)/profit before tax  
(150)
412 
34 
  
222 
494 
16 
288 
                 
 
 
Europe RBB
                
Adjusted basis
 
                
Total income net of insurance claims  
219 
243 
243 
  
247 
375 
309 
295 
Credit impairment charges and other provisions  
(76)
(85)
(72)
  
(83)
(62)
(47)
(69)
Net operating income
 
143 
158 
171 
  
164 
313 
262 
226 
Operating expenses  
(204)
(211)
(217)
  
(291)
(263)
(368)
(289)
Other net income
2 
4 
3 
  
2 
2 
4 
4 
Adjusted (loss)/profit before tax
 
(59)
(49)
(43)
  
(125)
52 
(102)
(59)
                 
Adjusting items
 
                
Goodwill impairment  
- 
- 
- 
  
(427)
- 
- 
- 
Statutory (loss)/profit before tax
 
(59)
(49)
(43)
  
(552)
52 
(102)
(59)
                 
 
 
Africa RBB
                
Adjusted basis
 
                
Total income net of insurance claims  
765 
795 
830 
  
861 
940 
906 
864 
Credit impairment charges and other provisions  
(180)
(214)
(107)
  
(88)
(108)
(126)
(144)
Net operating income  
585 
581 
723 
  
773 
832 
780 
720 
Operating expenses  
(531)
(485)
(548)
  
(505)
(613)
(586)
(575)
Other net income
2 
1 
2 
  
1 
- 
1 
2 
Adjusted profit before tax  
56 
97 
177 
  
269 
219 
195 
147 
                 
Adjusting items
 
                
Gains on acquisitions and disposals  
- 
- 
- 
  
- 
2 
- 
- 
Statutory profit before tax
 
56 
97 
177 
  
269 
221 
195 
147 
                 
 
 
Barclaycard
                
Adjusted basis
 
                
Total income net of insurance claims  
1,046 
1,036 
990 
  
983 
1,140 
1,012 
960 
Credit impairment charges and other provisions  
(254)
(228)
(232)
  
(271)
(340)
(344)
(304)
Net operating income  
792 
808 
758 
  
712 
800 
668 
656 
Operating expenses 1 
(402)
(412)
(418)
  
(458)
(430)
(400)
(371)
Other net income
7 
8 
9 
  
5 
8 
7 
11 
Adjusted profit before tax  
397 
404 
349 
  
259 
378 
275 
296 
                 
Adjusting items
 
                
Provision for PPI redress1 
(150)
- 
- 
  
- 
- 
(600)
- 
Goodwill impairment  
- 
- 
- 
  
- 
- 
(47)
- 
Statutory profit/(loss) before tax  
247 
404 
349 
  
259 
378 
(372)
296 
                 
 
 
 
 
 
 
1        The provision for PPI redress includes claims management costs relating to Q2 12 (UK RBB: £13m, Barclaycard: £15m) and Q1 12 (UK RBB: £11m, Barclaycard: £13m), previously recorded within operating expenses as a non-adjusting item.
 

 
Appendix I - Quarterly Results Summary
 
Investment Bank
Q312
Q212
Q112
  
Q411
Q311
Q211
Q111
 
£m
£m
£m
  
£m
£m
£m
£m
Adjusted and statutory basis
 
                
Fixed Income, Currency and Commodities  
1,581 
1,968 
2,396 
  
971 
1,438 
1,715 
2,201 
Equities and Prime Services  
534 
423 
550 
  
305 
338 
563 
545 
Investment Banking  
487 
501 
509 
  
506 
389 
520 
612 
Principal Investments  
31 
140 
9 
  
36 
89 
99 
8 
Total income
 
2,633 
3,032 
3,464 
  
1,818 
2,254 
2,897 
3,366 
Credit impairment (charges)/releases and other provisions  
(23)
(248)
(75)
  
(90)
(114)
80 
31 
Net operating income
 
2,610 
2,784 
3,389 
  
1,728 
2,140 
2,977 
3,397 
Operating expenses  
(1,680)
(1,788)
(2,145)
  
(1,458)
(1,758)
(2,006)
(2,067)
Other net income/(expense)
7 
6 
22 
  
(3)
6 
6 
3 
Adjusted profit before tax and profit before tax
937 
1,002 
1,266 
  
267 
388 
977 
1,333 
                 
 
 
Corporate Banking
                
Adjusted basis
 
                
Total income net of insurance claims  
678 
703 
824 
  
710 
830 
817 
751 
Credit impairment charges and other provisions  
(210)
(218)
(207)
  
(252)
(283)
(327)
(285)
Net operating income  
468 
485 
617 
  
458 
547 
490 
466 
Operating expenses  
(376)
(357)
(397)
  
(422)
(436)
(459)
(442)
Other net income/(expense)
6 
(1)
(1)
  
1 
2 
2 
(3)
Adjusted profit before tax  
98 
127 
219 
  
37 
113 
33 
21 
                 
Adjusting items
 
                
Goodwill impairment  
- 
- 
- 
  
(123)
- 
- 
- 
Provision for interest rate hedging products redress
- 
(450)
- 
  
- 
- 
- 
- 
Losses on disposal  
- 
- 
- 
  
(9)
- 
(64)
- 
Statutory profit/(loss) before tax  
98 
(323)
219 
  
(95)
113 
(31)
21 
                 
 
 
Wealth and Investment Management
                
Adjusted and statutory basis
 
                
Total income net of insurance claims  
442 
441 
451 
  
449 
447 
426 
422 
Credit impairment charges and other provisions  
(6)
(12)
(7)
  
(10)
(12)
(9)
(10)
Net operating income  
436 
429 
444 
  
439 
435 
417 
412 
Operating expenses  
(358)
(367)
(384)
  
(384)
(369)
(375)
(365)
Other net income/(expense)
1 
(1)
- 
  
(1)
(1)
- 
(1)
Adjusted profit before tax and profit before tax
79 
61 
60 
  
54 
65 
42 
46 
                 
Head Office and Other Operations
                
Adjusted basis
 
                
Total (expense)/income net of insurance claims  
(41)
(41)
259 
  
15 
(258)
12 
8 
Credit impairment (charges)/releases and other provisions  
- 
(3)
(2)
  
(1)
1 
(3)
4 
Net operating (expense)/income
 
(41)
(44)
257 
  
14 
(257)
9 
12 
Operating expenses (excluding UK bank levy)  
(136)
(251)
(174)
  
(144)
(115)
(124)
(80)
UK bank levy  
- 
- 
- 
  
(325)
- 
- 
- 
Other net (expense)/income
(4)
23 
- 
  
- 
- 
- 
- 
Adjusted (loss)/profit before tax
 
(181)
(272)
83 
  
(455)
(372)
(115)
(68)
                 
Adjusting items
 
                
Own credit  
(1,074)
(325)
(2,620)
  
(263)
2,882 
440 
(351)
Impairment and gain/(loss) on disposal of BlackRock investment
- 
227 
- 
  
- 
(1,800)
(58)
- 
Gains on debt buy-backs  
- 
- 
- 
  
1,130 
- 
- 
- 
(Losses)/gains on acquisitions and disposals  
- 
- 
- 
  
(23)
1 
(3)
2 
Statutory (loss)/profit before tax  
(1,255)
(370)
(2,537)
  
389 
711 
264 
(417)

Appendix II - Margins and Income by Geography
 
Analysis of Net Interest Margin
              
 
 
 
UK RBB margin
Europe RBB margin
Africa RBB margin1 
Barclay-
card margin
Corporate Banking margin1 
Wealth and Investment Management margin
Total RBB, Corporate and Wealth margin
RBB, Corporate and Wealth interest income
Nine Months Ended 30.09.12
%
%
%
%
%
%
%
£m
Customer asset margin/ interest income
1.09 
0.82 
3.25 
9.34 
1.18 
0.64 
2.11 
5,025 
Customer liability margin/ interest income
0.97 
0.45 
2.38 
nm
1.07 
1.12 
1.11 
2,320 
Non-customer generated margin/ interest income
0.36 
0.35 
0.22 
(0.66)
0.14 
0.25 
0.22 
989 
                 
Net interest margin/ income
1.39 
1.07 
3.13 
8.68 
1.26 
1.23 
1.86 
8,334 
                 
Average customer assets (£m)
 123,217 
 41,241 
 34,084 
 32,072 
 68,048 
 19,325 
 317,987 
n/a
Average customer liabilities (£m)
 111,044 
 15,034 
 22,255 
nm
 81,833 
 49,182 
 279,348 
n/a
                 
Nine Months Ended 30.09.11
                
Customer asset margin/ interest income
1.25 
0.91 
2.93 
9.59 
1.53 
0.78 
2.23 
5,303 
Customer liability margin/ interest income
0.85 
0.59 
2.67 
nm
0.91 
0.97 
1.03 
2,077 
Non-customer generated margin/ interest income
0.48 
0.51 
0.38 
0.13 
0.35 
0.38 
0.41 
1,805 
                 
Net interest margin/ income
1.54 
1.33 
3.21 
9.72 
1.56 
1.30 
2.09 
9,185 
                 
Average customer assets (£m)
 117,540 
 43,693 
 39,178 
 29,973 
 69,881 
 17,143 
 317,408 
n/a
Average customer liabilities (£m)
 107,276 
 18,021 
 23,884 
nm
 76,249 
 43,957 
 269,387 
n/a
 
 
.   Net interest income for the RBB, Corporate Banking and Wealth and Investment Management businesses reduced 9% to £8,334m due to the reduction in contribution from Group structural hedging activities, including the non
       recurrence of £516m gains on disposal of hedging instruments recognised in Q3 11. Total customer generated interest income in these businesses was flat at £7,345m
 
 
.   The RBB, Corporate Banking and Wealth and Investment Management net interest margin reduced 23bps to 186bps, principally due to the impact of reduced contributions from the Group structural hedging activities on non-
       customer generated margin, which reduced 19bps to 22bps
 
 
.   Group net interest income including contributions for the Investment Bank and Head Office and Other Functions was £8,786m (2011: £9,237m)
 
 
.   The total contribution from Group product and equity structural hedges reduced £1,503m to £1,296m, principally due to the non recurrence of gains on disposal of hedging instruments in Q3 11 of £1,000m
 
 
 
 
 
Income by Geographic Region2 
Adjusted3
  
Statutory
 
 
 
30.09.12
30.09.11
    
30.09.12
30.09.11
  
 
£m
£m
% Change
  
£m
£m
% Change
UK
9,371 
9,476 
(1)
  
5,352 
12,447 
(57)
Europe
3,071 
3,566 
(14)
  
3,071 
3,566 
(14)
Americas
5,610 
4,695 
19 
  
5,837 
4,637 
26 
Africa and Middle East
3,401 
3,784 
(10)
  
3,401 
3,784 
(10)
Asia
894 
779 
15 
  
894 
779 
15 
Total   
22,347 
 22,300 
  
- 
  
18,555 
 25,213 
(26)
 
 
 
 
 
 
1        2011 comparatives have been revised to reflect certain corporate banking activities previously reported in Africa RBB which are now included within Corporate Banking. Africa RBB comparatives have additionally been
           revised to include gross cheque advances and cheque deposits within average assets and average liabilities respectively where these were previously reported net.
 
2       Total income net of insurance claims based on counterparty location.
3       Adjusted income by geographic region excludes the impact o f an own credit charge of £4,019 m (2011: gain of £2,971m) and a gain on disposal of strategic investment in BlackRock, Inc. of £227m (2011: loss of £58m)
 
 

Appendix III - Balance Sheet and Capital
 
Consolidated Summary Balance Sheet (Unaudited)
    
 
As at
As at
 
30.09.12
30.06.12
Assets
£m
£m
Cash, balances at central banks and items in the course of collection
103,622 
128,660 
Trading portfolio assets
160,921 
166,300 
Financial assets designated at fair value
45,426 
45,928 
Derivative financial instruments
494,852 
517,685 
Available for sale financial investments
72,361 
68,922 
Loans and advances to banks
49,001 
48,777 
Loans and advances to customers
452,877 
454,728 
Reverse repurchase agreements and other similar secured lending
194,665 
174,392 
Other assets
25,413 
25,873 
Total assets
1,599,138 
1,631,265 
     
Liabilities
    
Deposits and items in the course of collection due to banks
91,445 
96,138 
Customer accounts
407,260 
408,550 
Repurchase agreements and other similar secured borrowing
238,649 
245,833 
Trading portfolio liabilities
58,090 
51,747 
Financial liabilities designated at fair value
88,125 
94,855 
Derivative financial instruments  
487,528 
507,351 
Debt securities in issue
124,786 
124,968 
Subordinated liabilities
21,801 
22,089 
Other liabilities
17,746 
16,044 
Total liabilities
1,535,430 
1,567,575 
     
Shareholders' Equity
    
Called up share capital and share premium
12,471 
12,462 
Other reserves
3,585 
3,267 
Retained earnings
38,239 
38,476 
Shareholders' equity excluding non-controlling interests
54,295 
54,205 
Non-controlling interests
9,413 
9,485 
Total shareholders' equity
63,708 
63,690 
     
Total liabilities and shareholders' equity
1,599,138 
1,631,265 

Appendix III - Balance Sheet and Capital
 
Key Capital Ratios
As at 30.09.12
As at 30.06.12
Core tier 1
11.2%
10.9%
Tier 1
13.7%
13.3%
Total capital
16.9%
16.5%
     
Capital Resources
£m
£m
Shareholders' equity (excluding non-controlling interests) per balance sheet:
 54,295 
 54,205 
     
Non-controlling interests per balance sheet
9,413 
9,485 
- Less: Other tier 1 capital - preference shares
(6,214)
(6,225)
- Less: Other tier 1 capital - Reserve Capital Instruments
- 
- 
- Less: Non-controlling tier 2 capital
(548)
(564)
Other regulatory adjustments
(242)
(171)
     
Regulatory adjustments and deductions:
    
Own credit cumulative charge/(gain) (net of tax)
323 
(492)
Defined benefit pension adjustment
(2,297)
(2,260)
Unrealised (gains)/losses on available for sale debt securities
(433)
83 
Unrealised gains on available for sale equity (recognised as tier 2 capital)
(88)
(95)
Cash flow hedging reserve
(2,049)
(1,676)
Goodwill and intangible assets
(7,564)
(7,574)
50% excess of expected losses over impairment (net of tax)
(519)
(500)
50% of securitisation positions
(1,550)
(1,663)
Other regulatory adjustments
(20)
23 
Core tier 1 capital
 42,507 
 42,576 
     
Other tier 1 capital:
    
Preference shares
6,214 
6,225 
Tier 1 notes1 
512 
521 
Reserve Capital Instruments
2,875 
2,874 
     
Regulatory adjustments and deductions:
    
50% of material holdings
(243)
(285)
50% tax on excess of expected losses over impairment
111 
100 
Total tier 1 capital
 51,976 
 52,011 
     
Tier 2 capital:
    
Undated subordinated liabilities
1,647 
1,648 
Dated subordinated liabilities
11,872 
12,488 
Non-controlling tier 2 capital
548 
564 
Reserves arising on revaluation of property
22 
21 
Unrealised gains on available for sale equity
88 
95 
Collectively assessed impairment allowances
1,844 
1,783 
     
Tier 2 deductions:
    
50% of material holdings
(243)
(285)
50% excess of expected losses over impairment (gross of tax)
(630)
(601)
50% of securitisation positions
(1,550)
(1,663)
     
Total capital regulatory adjustments and deductions:
    
Investments that are not material holdings or qualifying holdings
(1,199)
(1,209)
Other deductions from total capital
(475)
(565)
Total regulatory capital
 
 63,900 
 64,287 
 
 
 
 
 
1        Tier 1 notes are included in subordinated liabilities in the consolidated balance sheet.

 
Appendix III - Balance Sheet and Capital
 
 
Total Assets by Business
  
Risk Weighted Assets by Business
 
 
Assets and Risk Weighted Assets by Business
As at
30.09.12
As at
30.06.12
  
As at
30.09.12
As at
30.06.12
 
£m
£m
  
£m
£m
UK RBB
133,750 
130,776 
  
37,305 
36,038 
Europe RBB
47,201 
48,109 
  
16,055 
16,563 
Africa RBB
45,788 
47,398 
  
26,846 
27,909 
Barclaycard
36,103 
34,596 
  
33,573 
33,149 
Investment Bank
1,188,580 
1,225,409 
  
180,415 
190,553 
Corporate Banking
85,753 
87,758 
  
64,349 
69,328 
Wealth and Investment Management
22,418 
22,205 
  
14,095 
13,998 
Head Office and Other Functions
39,545 
35,014 
  
6,004 
2,685 
Total
1,599,138 
1,631,265 
  
378,642 
390,223 
           
 
 
 
As at
As at 
Balance Sheet Leverage
30.09.12
30.06.12
 
£m
£m
Total assets per balance sheet1 
1,599,138 
1,631,265 
Counterparty netting
(411,440)
(425,616)
Collateral on derivatives
(48,142)
(51,421)
Net settlement balances and cash collateral
(100,072)
(97,181)
Goodwill and intangible assets
(7,859)
(7,861)
Customer assets held under investment contracts2 
(1,570)
(1,661)
Adjusted total tangible assets
1,030,055 
 1,047,525 
Total qualifying Tier 1 capital
51,976 
52,011 
Adjusted gross leverage
20x
20x
Adjusted gross leverage (excluding liquidity pool)
17x
17x
Ratio of total assets to shareholders' equity
25x
26x
Ratio of total assets to shareholders' equity (excluding liquidity pool)
23x
23x
 
 
 
.   Barclays continues to manage its balance sheet within limits and targets for balance sheet usage
 
.   Adjusted gross leverage remained stable at 20x with qualifying Tier 1 capital remaining broadly flat and adjusted total tangible assets down 2%
 
.   During Q3 12, the ratio moved in a range from 20x to 21x (2012 year to date: 20x to 23x, Full Year 2011: 20x to 23x) primarily due to fluctuations in collateralised reverse repurchase lending and high quality trading portfolio assets
 
 
.   Adjusted total tangible assets include cash and balances at central banks of £100.9bn (30 June 2012: £126.1bn). Excluding these balances, the balance sheet leverage would be 18x (30 June 2012: 18x). Excluding the whole liquidity
       pool, leverage would be 17x (30 June 2012: 17x)
 
 
.   The ratio of total assets to total shareholders' equity was 25x (30 June 2012: 26x) and during Q3 12 moved within a month end range of 25x to 26x (2012 Year to date: 25x to 28x, Full Year 2011: 24 x to 28x), driven by fluctuations
       noted above and changes in gross interest rate derivatives and settlement balances
 
 
 
 
 
 
1        Includes Liquidity Pool of £160bn (30 June 2012: £170bn).
 
2       Comprising financial assets designated at fair value and associated cash balances.
 

 
 
 
 
Appendix III - Balance Sheet and Capital
 
Retail and Wholesale Loans and Advances to Customers and Banks
 
 
As at 30.09.12
Gross
 L&A
Impairment Allowance
L&A Net of Impairment
Credit Risk loans
CRLs % of Gross L&A
Loan Impairment Charges1 
Loan Loss
 Rate
 
£m
£m
£m
£m
£m
£m
bps
Total retail
241,655 
4,854 
236,801 
9,206 
3.8 
1,490 
82 
Wholesale - customers
220,948 
4,872 
216,076 
9,922 
4.5 
1,162 
70 
Wholesale - banks
49,039 
38 
49,001 
- 
- 
(12)
(3)
Total wholesale
269,987 
4,910 
265,077 
9,922 
3.7 
1,150 
57 
               
Loans and advances at amortised cost
511,642 
9,764 
501,878 
19,128 
3.7 
2,640 
69 
Loans and advances held at fair value
23,013 
na
23,013 
        
Total loans and advances
534,655 
9,764 
524,891 
        
               
 As at 30.06.12
              
Total retail
240,903 
5,021 
235,882 
9,545 
4.0 
978 
82 
Wholesale - customers
223,719 
4,873 
218,846 
10,161 
4.5 
842 
76 
Wholesale - banks
48,829 
52 
48,777 
35 
0.1 
2 
1 
Total wholesale
272,548 
4,925 
267,623 
10,196 
3.7 
844 
62 
               
Loans and advances at amortised cost
513,451 
9,946 
503,505 
19,741 
3.8 
1,822 
71 
Loans and advances held at fair value
24,256 
na
24,256 
        
Total loans and advances
537,707 
9,946 
527,761 
        
 
 
               
Retail Loans and Advances at Amortised Cost
    
 
 
As at 30.09.12
Gross L&A
Impairment Allowance
L&A Net of Impairment
Credit Risk Loans
CRLs % of Gross L&A
Loan Impairment Charges4 
Loan Loss  Rates
 
£m
£m
£m
£m
%
£m
bps
UK RBB
 124,673 
 1,352 
 123,321 
 2,629 
 2.1 
 167 
 18 
Europe RBB2 
 40,970 
 693 
 40,277 
 1,856 
 4.5 
 233 
 76 
Africa RBB
 24,722 
 753 
 23,969 
 1,870 
 7.6 
 374 
 202 
Barclaycard
 32,162 
 1,826 
 30,336 
 2,262 
 7.0 
 694 
 288 
Corporate Banking3 
 1,093 
 136 
 957 
 140 
 12.8 
 1 
 12 
Wealth and Investment Management
 18,035 
 94 
 17,941 
 449 
 2.5 
 21 
 16 
Total
 241,655 
 4,854 
 236,801 
 9,206 
 3.8 
 1,490 
 82 
               
As at 30.06.12
              
UK RBB
 122,284 
 1,403 
 120,881 
 2,713 
2.2 
 100 
 16 
Europe RBB2 
 42,198 
 721 
 41,477 
 1,833 
4.3 
 157 
 75 
Africa RBB
 25,591 
 770 
 24,821 
 2,087 
8.2 
 257 
 202 
Barclaycard
 31,908 
 1,890 
 30,018 
 2,321 
7.3 
 446 
 281 
Corporate Banking3 
 1,207 
 145 
 1,062 
 145 
12.0 
 1 
 17 
Wealth and Investment Management
 17,715 
 92 
 17,623 
 446 
2.5 
 17 
 19 
Total
 240,903 
 5,021 
 235,882 
 9,545 
4.0 
 978 
 82 
 
 
 
 
 
 
1        Loan impairment charges, comprising impairment on loans and advances and charges in respect of undrawn facilities and guarantees.
2       Includes loans and advances to business customers.
 
3        Primarily comprises retail portfolios in India and UAE.
 
4       Loan impairment charge as at June 2012 is the charge incurred over the period of 6 months.
 

 
Appendix III - Balance Sheet and Capital
 
Wholesale Loans and Advances at Amortised Cost1 
        
 
 
As at 30.09.12
Gross
L&A
Impairment Allowance
L&A Net of Impairment
Credit
Risk Loans
CRLs % of Gross L&A
Loan Impairment Charges
Loan Loss Rates
 
£m
£m
£m
£m
%
£m
bps
UK RBB
 2,909 
 63 
 2,846 
236 
8.1 
 31 
 142 
Africa RBB
 9,342 
 298 
 9,044 
811 
8.7 
 128 
 183 
Barclaycard2 
 606 
 7 
 599 
3 
0.5 
 21 
 463 
Investment Bank3 
 188,684 
 2,442 
 186,242 
4,555 
2.4 
 344 
 24 
Corporate Banking
 64,779 
 2,029 
 62,750 
3,978 
6.1 
 621 
 128 
- UK
 51,525 
 405 
 51,120 
1,303 
2.5 
 213 
 55 
- Europe
 8,390 
 1,525 
 6,865 
2,523 
30.1 
 406 
 646 
- Rest of World
 4,864 
 99 
 4,765 
152 
3.1 
 2 
 5 
Wealth and Investment Management
 2,383 
 53 
 2,330 
320 
13.4 
 4 
 22 
Head Office and Other Functions
 1,284 
 18 
 1,266 
19 
1.5 
1 
 10 
Total
 269,987 
 4,910 
 265,077 
9,922 
3.7 
 1,150 
 57 
               
As at 30.06.12
              
UK RBB
 2,844 
 66 
 2,778 
241 
8.5 
 22 
 156 
Africa RBB
 9,952 
 278 
 9,674 
839 
8.4 
 64 
 129 
Barclaycard2 
 589 
 7 
 582 
5 
0.8 
 14 
 478 
Investment Bank3 
 188,414 
 2,494 
 185,920 
4,631 
2.5 
 324 
 35 
Corporate Banking
 67,034 
 2,010 
 65,024 
4,117 
6.1 
 417 
 125 
- UK4 
 52,404 
 433 
 51,971 
 1,243 
2.4 
 143 
 55 
- Europe4 
 9,106 
 1,474 
 7,632 
 2,714 
29.8 
 273 
 602 
- Rest of World4 
 5,524 
 103 
 5,421 
 160 
2.9 
 1 
 5 
Wealth and Investment Management
 2,441 
 52 
 2,389 
329 
13.5 
 2 
 16 
Head Office and Other Functions
 1,274 
 18 
 1,256 
34 
2.7 
 1 
 16 
Total
 272,548 
 4,925 
 267,623 
10,196 
3.7 
 844 
 62 
 
 
 
 
 
 
1        Loans and advances to business customers in Europe RBB are included in the Retail Loans and Advances to Customers at Amortised Cost table on page 25.
 
2       Barclaycard wholesale loans and advances represent corporate credit and charge cards.
 
3        Investment Bank gross loans and advances include cash collateral and settlement balances of £117bn as at 30 September 2012 and £111bn as at 30 June 2012. Excluding these balances CRLs as a proportion of gross
          loans and advances was 6.35% (30 June 2012: 5.98% respectively).
 
4       Balances revised following a reallocation of £1,361m from UK to Europe (£390m) and Rest of World (£971m).
 

Appendix IV - Group Exposures to Selected Countries
 
Group Exposures to Selected Eurozone Countries
 
Direct credit and market risk exposures
 
.   The following table shows Barclays net exposure to those Eurozone countries monitored internally as being higher risk and the subject of particular management focus. Detailed analysis on these countries is on pages 29 to 34.
       The basis of preparation is consistent with that described in the H1 2012 Results Announcement. Net exposures are shown as they provide a relevant measure of counterparty credit risk
 
 
 
 
           
Total net on-
Contingent
  
   
Financial
  
Residential
Other retail
balance sheet
liabilities and
Total
As at 30.09.12
Sovereign
institutions
Corporate
mortgages
lending
exposure
commitments
exposure
 
£m
£m
£m
£m
£m
£m
£m
£m
Spain
 2,165 
 2,866 
 4,175 
 13,261 
 2,815 
 25,282 
 3,195 
 28,477 
Italy
 1,946 
 298 
 1,790 
 15,238 
 1,991 
 21,263 
 2,836 
 24,099 
Portugal
 627 
 67 
 2,190 
 3,436 
 1,752 
 8,072 
 2,623 
 10,695 
Ireland
 10 
 3,790 
 1,023 
 78 
 105 
 5,006 
 1,518 
 6,524 
Cyprus
 8 
 3 
 133 
 48 
 18 
 210 
 120 
 330 
Greece
 1 
 1 
 59 
 6 
 16 
 83 
 14 
 97 
                 
As at 30.06.12
                
Spain
 2,207 
 1,082 
 5,117 
 13,645 
 2,988 
 25,039 
 3,244 
 28,283 
Italy
 2,551 
 270 
 2,500 
 15,447 
 2,134 
 22,902 
 2,616 
 25,518 
Portugal
 588 
 45 
 2,415 
 3,510 
 1,879 
 8,437 
 2,740 
 11,177 
Ireland
 211 
 4,222 
 1,109 
 91 
 105 
 5,738 
 1,570 
 7,308 
Cyprus
 8 
 6 
 130 
 51 
 6 
 201 
 122 
 323 
Greece
 1 
 1 
 59 
 8 
 19 
 88 
 20 
 108 
 
Exposures to other Eurozone countries
 
.   Barclays has net exposures to other Eurozone countries as set out below. Individual countries that have an on-balance sheet exposure of less than £1bn are reported in aggregate under Other
 
 
 
           
Total net on-
Contingent
  
   
Financial
  
Residential
Other retail
balance sheet
liabilities and
Total
As at 30.09.12
Sovereign
institutions
Corporate
mortgages
lending
exposure
commitments
exposure
 
£m
£m
£m
£m
£m
£m
£m
£m
France
 3,544 
 6,072 
 3,584 
 2,518 
 204 
 15,922 
 7,497 
 23,419 
Germany
 280 
 4,841 
 2,832 
 24 
 1,645 
 9,622 
 6,406 
 16,028 
Netherlands
 2,599 
 5,039 
 2,012 
 15 
 66 
 9,731 
 1,837 
 11,568 
Luxembourg
 2 
 3,965 
 581 
 105 
 49 
 4,702 
 748 
 5,450 
Belgium
 2,618 
 13 
 377 
 9 
 2 
 3,019 
 1,558 
 4,577 
Austria
 1,437 
 279 
 194 
 5 
 - 
 1,915 
 97 
 2,012 
Finland
 1,122 
 149 
 45 
 2 
 - 
 1,318 
 451 
 1,769 
Other
 183 
 6 
 34 
 24 
 50 
 297 
 23 
 320 
                 
As at 30.06.12
                
France
 3,867 
 4,350 
 3,432 
 2,612 
 267 
 14,528 
 6,949 
 21,477 
Germany
 1,170 
 5,377 
 2,985 
 26 
 1,605 
 11,163 
 6,457 
 17,620 
Netherlands
 2,513 
 4,646 
 1,857 
 16 
 23 
 9,055 
 1,918 
 10,973 
Luxembourg
 24 
 3,104 
 551 
 100 
 91 
 3,870 
 760 
 4,630 
Belgium
 2,670 
 88 
 303 
 10 
 4 
 3,075 
 1,660 
 4,735 
Austria
 675 
 300 
 178 
 5 
 1 
 1,159 
 182 
 1,341 
Finland
 586 
 133 
 50 
 3 
 - 
 772 
 431 
 1,203 
Other
 186 
 3 
 41 
 27 
 42 
 299 
 48 
 347 

 
Appendix IV - Group Exposures to Selected Countries
 
Credit Derivatives Referencing Eurozone Sovereign Debt
 
 
.   The Group enters into credit mitigation arrangements (principally credit default swaps and total return swaps) primarily for risk management purposes for which the reference asset is government debt. These generally have the net
       effect of reducing the Group's exposure in the event of sovereign default
 
 
 
As at 30.09.12
Spain
Italy
Portugal
Ireland
Cyprus
Greece
 
£m
£m
£m
£m
£m
£m
Fair value
            
- Bought
245 
361 
139 
61 
1 
- 
- Sold
(242)
(297)
(131)
(74)
(1)
- 
Net derivative fair value
3 
64 
8 
(13)
- 
- 
             
Contract notional amount
            
- Bought
(2,507)
(3,901)
(1,173)
(953)
(4)
- 
- Sold
2,457 
3,757 
1,016 
1,048 
4 
- 
Net derivative notional amount
(50)
(144)
(157)
95 
- 
- 
             
Net (protection)/exposure from credit derivatives in the event of sovereign default (notional less fair value)
(47)
(80)
(149)
82 
- 
- 
 
 
.   The net derivative notional amount disclosed represents a reduction in exposures and should be considered alongside the direct exposures as disclosed in the following pages
 
 
.   In addition, the Group has indirect sovereign exposure through the guarantee of certain savings and investment funds, which hold a proportion of their assets in sovereign debt. As at 30 September 2012, the net liability in respect
       of these guarantees was £34m (30 June 2012: £45m)
 
 
Eurozone balance sheet funding
mismatches
 
.   Redenomination risk is the risk of financial loss to the Group should one or more countries exit from the Euro, leading to the devaluation of local balance sheet assets and liabilities. The Group is directly exposed to redenomination
       risk where there is a mismatch between the level of locally denominated assets and funding
 
 
.   Within Barclays, retail banking, corporate banking and wealth activities in the Eurozone are generally booked locally within each country. Locally booked external customer assets and liabilities, primarily loans and advances to
       customers and customer deposits, are predominantly denominated in Euros. The remaining funding mismatch between local external assets and liabilities is met through local funding secured against customer loans and advances,
       with any residual mismatch funded through the Group
 
 
.   Barclays continues to monitor and take mitigating actions to limit the potential impact of the Eurozone volatility on local balance sheet funding
 
 
.   During Q3 12, mitigating actions have been taken to reduce local net funding mismatches in particular through the attraction of corporate deposits in Spain and reducing corporate lending in Spain and Portugal. As a result the
       Group reduced the aggregate net local balance sheet funding mismatch from £2.5bn to £0.1bn in Spain and from £3.7bn to £3.3bn in Portugal
 
 
.   In Italy net funding by the Group reduced from £11.9bn to £9.6bn during Q3 12. Collateral is available to support additional secured funding in Italy should the risk of redenomination increase
 
 
 
.   Direct exposure to Greece is very small with negligible net funding required from Group. For Ireland there is no local balance sheet funding requirement by the Group as total liabilities in this country exceed total assets
 
 
 

 
Appendix IV - Group Exposures to Selected Countries
 
Spain
Trading Portfolio
  
Derivatives
Designated
      
 
 
Fair Value through
Trading
Trading
Net
          
at FV
Total
  
Total
Profit and Loss
Portfolio
Portfolio
Trading
  
Gross
Gross
Cash
Net
through
as at
  
as at
 
Assets
Liabilities
Portfolio
  
Assets
Liabilities
Collateral
Derivatives
P&L
30.09.12
  
30.06.12
 
£m
£m
£m
  
£m
£m
£m
£m
£m
£m
 
  
£m
Sovereign
 1,101 
 (849)
 252 
  
 32 
 (32)
 - 
 - 
 - 
 252 
  
 232 
Financial institutions
 2,195 
 (156)
 2,039 
  
 7,936 
 (7,383)
 (553)
 - 
 155 
 2,194 
  
 367 
Corporate
 215 
 (209)
 6 
  
 535 
 (208)
 - 
 327 
 304 
 637 
  
 1,291 
                         
 
 
                       
Total
Fair Value through Equity
    
Available for Sale Assets as at 30.09.121
  
as at
 
 
         
Cost
AFS Reserve
  
Total
  
30.06.12
         
£m
£m
  
£m
 
  
£m
 
 
Sovereign
          
 1,954 
  
 (69)
  
 1,885 
  
 1,926 
Financial institutions
          
 490 
  
 (12)
  
 478 
  
 467 
Corporate
          
 6 
  
 - 
  
 6 
  
 5 
                         
                           
 
 
Held at Amortised Cost
    
Loans and Advances as at 30.09.12
  
Total
 
 
               
Impairment
      
as at
           
Gross
  
Allowances
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Sovereign
          
 28 
  
 - 
  
 28 
  
 49 
Financial institutions
          
 208 
  
 (14)
  
 194 
  
 248 
Residential mortgages
          
 13,355 
  
 (94)
  
 13,261 
  
 13,645 
Corporate
          
 4,636 
  
 (1,104)
  
 3,532 
  
 3,821 
Other retail lending
          
 2,945 
  
 (130)
  
 2,815 
  
 2,988 
                         
 
 
                   
Total
  
Total
Contingent Liabilities and Commitments
            
as at
  
as at
 
 
                   
30.09.12
  
30.06.12
                   
£m
  
£m
Sovereign
                  
 - 
  
 162 
Financial institutions
                  
 102 
  
 17 
Residential mortgages
                  
 15 
  
 14 
Corporate
                  
 1,953 
  
 2,027 
Other retail lending
                  
 1,125 
  
 1,024 
 
 
.   Sovereign
 
 
        -      Largely AFS government bonds. No impairment and £69m (30 June 2012: £158m) loss held in AFS reserve
 
 
.   Financial institutions
 
 
       -      £2,194m (30 June 2012: £367m) held at fair value through profit and loss, predominantly traded equity securities that are fully hedged by total return swaps with non-Spanish counterparties
 
 
       -       £478m (30 June 2012: £467m) AFS assets with £12m (30 June 2012: £28m) loss held in AFS reserve
 
 
.   Residential mortgages
 
 
       -       Fully secured on residential property with average marked to market LTV of 63.8% (30 June 2012: 62.7%), which is reflected in the CRL coverage of 30% (30 June 2012: 26%)
 
 
       -       90 day arrears rates have remained stable at 0.7% during Q3 12 while annualised loan loss rates have marginally increased to 45bps (30 June 2012: 43bps)
 
 
 
1        'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
 

 
Appendix IV - Group Exposures to Selected Countries
 
 
.   Corporate
 
 
       -     Net lending to corporates of £3,532m (30 June 2012: £3,821m) with CRLs of £1,870m (30 June 2012: £2,005m), impairment allowance of £1,104m (30 June 2012: £1,082m) and CRL coverage of 59% (30 June 2012: 54%)
 
 
       -      Net lending to property and construction industry of £1,223m (30 June 2012: £1,556m) largely secured on real estate collateral, with CRLs of £1,475m (30 June 2012: £1,364m), impairment allowance of £852m (30 June 2012:
              £795m) and CRL coverage of 58% (30 June 2012: 58%)
 
 
       -      Balances on early warning lists peaked in September 2009. Portfolio kept under close review and impairment recognised as appropriate
 
 
       -      Corporate impairment in Spain was at its highest level in H1 10 when commercial property declines were reflected earlier in the cycle
 
 
       -      £418m (30 June 2012: £368m) Investment Bank lending to multinational and large national corporates, which continues to perform
 
 
.   Other retail lending
 
 
       -      £1,019m (30 June 2012: £1,045m) credit cards and unsecured loans. Arrears and charge off rates in credit cards and unsecured loans increased marginally in Q3 12
 
 
       -      £1,447m (30 June 2012: £1,542m) lending to small and medium enterprises (SMEs), largely secured against commercial property
 

 
Appendix IV - Group Exposures to Selected Countries
 
Italy
Trading Portfolio
  
Derivatives
Designated
      
 
 
Fair Value through
Trading
Trading
Net
          
at FV
Total
  
Total
Profit and Loss
Portfolio
Portfolio
Trading
  
Gross
Gross
Cash
Net
through
as at
  
as at
 
Assets
Liabilities
Portfolio
  
Assets
Liabilities
Collateral
Derivatives
P&L
30.09.12
  
30.06.12
 
£m
£m
£m
  
£m
£m
£m
£m
£m
£m
 
  
£m
Sovereign
 2,313 
 (2,249)
 64 
  
 1,383 
 (1,118)
 - 
 265 
 2 
 331 
  
 598 
Financial institutions
 144 
 (113)
 31 
  
 7,169 
 (5,444)
 (1,725)
 - 
 124 
 155 
  
 129 
Corporate
 288 
 (204)
 84 
  
 648 
 (440)
 (17)
 191 
 224 
 499 
  
 415 
                         
                       
Total
Fair Value through Equity
    
Available for Sale Assets as at 30.09.121
  
as at
 
 
         
Cost
AFS Reserve
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Sovereign
          
 1,614 
  
 1 
  
 1,615 
  
 1,940 
Financial institutions
          
 127 
  
 2 
  
 129 
  
 127 
Corporate
          
 29 
  
 2 
  
 31 
  
 30 
           
                           
 
 
Held at Amortised Cost
    
Loans and Advances as at 30.09.12
  
Total
 
 
               
Impairment
      
as at
           
Gross
  
Allowances
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Sovereign
          
 - 
  
 - 
  
 - 
  
 13 
Financial institutions
          
 14 
  
 - 
  
 14 
  
 14 
Residential mortgages
          
 15,338 
  
 (100)
  
 15,238 
  
 15,447 
Corporate
          
 1,369 
  
 (109)
  
 1,260 
  
 2,055 
Other retail lending
          
 2,133 
  
 (142)
  
 1,991 
  
 2,134 
                         
                   
Total
  
Total
Contingent Liabilities and Commitments
            
as at
  
as at
 
 
                   
30.09.12
  
30.06.12
                   
£m
  
£m
Financial institutions
                  
 102 
  
 13 
Residential mortgages
                  
 55 
  
 60 
Corporate
                  
 1,871 
  
 1,668 
Other retail lending
                  
 808 
  
 875 
 
 
.   Sovereign
 
 
       -      Predominantly £1,615m (30 June 2012: £1,940m) AFS government bonds with no impairment or loss in the AFS reserve
 
 
.   Residential mortgages
 
 
        -      Fully secured on residential property with average marked to market LTVs of 46.3% (30 June 2012: 46.5%)
 
 
        -      90 day arrears rates at 1.1% (30 June 2012: 1.0%) and annualised loan loss rates of 18bps (30 June 2012: 17bps) remained broadly stable
 
 
        -      CRL coverage of 23% (30 June 2012: 23%)
 
 
.   Corporate
 
 
        -      Net loans and advances of £1,260m (30 June 2012: £2,055m), which are focused on large corporate clients with very limited exposure to the property sector
 
 
        -      Balances in early warning lists were broadly stable since December 2011
 
 
.   Other retail lending
 
 
        -       £1,397m (30 June 2012: £1,503m) Italian salary advance loans (repayment deducted at source by qualifying employers and Barclays is insured in the event of termination of employment or death). During Q3 12, arrears rates
                 have deteriorated while charge off rates have improved
 
 
        -       £417m (30 June 2012: £432m) credit cards and other unsecured loans. During Q3 12, arrears rates have improved while charge off rates have deteriorated
 
 
 
1        'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the
            balance sheet date.
 

 
Appendix IV - Group Exposures to Selected Countries
 
Portugal
Trading Portfolio
  
Derivatives
Designated
      
 
 
Fair Value through
Trading
Trading
Net
          
at FV
Total
  
Total
Profit and Loss
Portfolio
Portfolio
Trading
  
Gross
Gross
Cash
Net
through
as at
  
as at
 
Assets
Liabilities
Portfolio
  
Assets
Liabilities
Collateral
Derivatives
P&L
30.09.12
  
30.06.12
 
£m
£m
£m
  
£m
£m
£m
£m
£m
£m
 
  
£m
Sovereign
 130 
 (117)
 13 
  
 237 
 (237)
 - 
 - 
 - 
 13 
  
 - 
Financial institutions
 22 
 (6)
 16 
  
 284 
 (177)
 (107)
 - 
 - 
 16 
  
 12 
Corporate
 46 
 (8)
 38 
  
 441 
 (209)
 (5)
 227 
 - 
 265 
  
 262 
                         
                       
Total
Fair Value through Equity
    
Available for Sale Assets as at 30.09.121 
  
as at
 
 
         
Cost
AFS Reserve
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
 
£m
                         
 
 
Sovereign
          
 592 
  
 (15)
  
 577 
  
 550 
Financial institutions
          
 2 
  
 - 
  
 2 
  
 2 
Corporate
          
 436 
  
 (1)
  
 435 
  
 534 
                         
Held at Amortised Cost
    
Loans and Advances as at 30.09.12
  
Total
                           
 
 
               
Impairment
      
as at
           
Gross
  
Allowances
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Sovereign
          
 37 
  
 - 
  
 37 
  
 38 
Financial institutions
          
 49 
  
 - 
  
 49 
  
 31 
Residential mortgages
          
 3,461 
  
 (25)
  
 3,436 
  
 3,510 
Corporate
          
 1,744 
  
 (254)
  
 1,490 
  
 1,619 
Other retail lending
          
 1,944 
  
 (192)
  
 1,752 
  
 1,879 
                         
                   
Total
  
Total
Contingent Liabilities and Commitments
            
as at
  
as at
 
 
                   
30.09.12
  
30.06.12
                   
£m
  
£m
Sovereign
                  
 - 
  
 4 
Financial institutions
                  
 1 
  
 8 
Residential mortgages
                  
 29 
  
 39 
Corporate
                  
 1,015 
  
 1,240 
Other retail lending
                  
 1,578 
  
 1,449 
 
 
.   Sovereign
 
 
       -      Largely AFS government bonds. No impairment and £15m (30 June 2012: £56m) loss held in the AFS reserve
 
 
.   Residential mortgages
 
 
       -      Fully secured on residential property with average marked to market LTVs of 76.6% (30 June 2012: 73.1%)
 
 
       -       90 day arrears rates remained broadly stable at 0.6% (Jun 12: 0.6%) while annualised loan loss rates improved to 62bps (30 June 2012: 76bps)
 
 
       -       CRL coverage of 21% (30 June 2012: 21%)
 
 
.   Corporate
 
 
        -       Net lending to corporates of £1,490m (30 June 2012: £1,619m), with CRLs of £442m (30 June 2012: £512m), impairment allowance of £254m (30 June 2012: £230m) and CRL coverage of 57% (30 June 2012: 45%)
 
 
        -        Net lending to property and construction industry of £385m (30 June 2012: £306m) secured, in part, on real estate collateral, with CRLs of £258m (30 June 2012: £240m), impairment allowance of £120m (30 June 2012: £118m)
                 and CRL coverage of 46% (30 June 2012: 49%)
 
 
.   Other retail lending
 
 
        -       £963m (30 June 2012: £988m) credit cards and unsecured loans. During Q3 12, arrears rates in cards and unsecured portfolios have improved while charge off rates have marginally deteriorated
 
 
        -       CRL coverage of 74% (30 June 2012: 65%) driven by credit cards and unsecured loans exposure
 
 
 
 
1        'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the balance sheet date.
 

 
Appendix IV - Group Exposures to Selected Countries
 
Ireland
Trading Portfolio
  
Derivatives
Designated
      
 
 
Fair Value through
Trading
Trading
Net
          
at FV
Total
  
Total
Profit and Loss
Portfolio
Portfolio
Trading
  
Gross
Gross
Cash
Net
through
as at
  
as at
 
Assets
Liabilities
Portfolio
  
Assets
Liabilities
Collateral
Derivatives
P&L
30.09.12
  
30.06.12
 
£m
£m
£m
  
£m
£m
£m
£m
£m
£m
 
  
£m
Sovereign
 61 
 (61)
 - 
  
 - 
 - 
 - 
 - 
 2 
 2 
  
 - 
Financial institutions
 977 
 (29)
 948 
  
 4,805 
 (3,917)
 (888)
 - 
 491 
 1,439 
  
 1,795 
Corporate
 112 
 (50)
 62 
  
 282 
 (70)
 (117)
 95 
 77 
 234 
  
 238 
                         
                       
Total
Fair Value through Equity
    
Available for Sale Assets as at 30.09.121
  
as at
 
 
         
Cost
AFS Reserve
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Sovereign
          
 8 
  
 - 
  
 8 
  
 211 
Financial institutions
          
 44 
  
 2 
  
 46 
  
 29 
Corporate
          
 3 
  
 - 
  
 3 
  
 3 
           
Held at Amortised Cost
    
Loans and Advances as at 30.09.12
  
Total
                           
 
 
               
Impairment
      
as at
           
Gross
  
Allowances
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Financial institutions
          
 2,462 
  
 (157)
  
 2,305 
  
 2,398 
Residential mortgages
          
 88 
  
 (10)
  
 78 
  
 91 
Corporate
          
 795 
  
 (9)
  
 786 
  
 868 
Other retail lending
          
 105 
  
 - 
  
 105 
  
 105 
                         
                   
Total
  
Total
Contingent Liabilities and Commitments
            
as at
  
as at
 
 
                   
30.09.12
  
30.06.12
                   
£m
  
£m
Financial institutions
                  
 697 
  
 548 
Corporate
                  
 810 
  
 1,013 
Other retail lending
                  
 11 
  
 9 
 
 
.   Sovereign
 
 
       -       AFS exposure reduced to £8m (30 June 2012: £211m) due to the disposal of government bonds held for the purposes of interest rate hedging and liquidity, which have been replaced by bonds with alternative counterparties
 
 
.   Financial institutions
 
 
       -      Exposure focused on financial institutions with investment grade credit ratings
 
 
       -      Exposure to Irish banks amounted to £68m (30 June 2012: £82m)
 
 
       -       £1.2bn (30 June 2012: £0.9bn) of loans relate to issuers domiciled in Ireland whose principal business and exposures are outside of Ireland
 
 
.   Corporate
 
 
        -       £786m (30 June 2012: £868m) net loans and advances, including a significant proportion to other multinational entities domiciled in Ireland, whose principal businesses and exposures are outside of Ireland
 
 
        -       The portfolio continues to perform and has not been impacted materially by the decline in the property sector
 
 
 
 
 
 
1        'Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the
           balance sheet date.
 

 
Appendix IV - Group Exposures to Selected Countries
 
Greece
Trading Portfolio
  
Derivatives
Designated
      
 
 
Fair Value through
Trading
Trading
Net
          
at FV
Total
  
Total
Profit and Loss
Portfolio
Portfolio
Trading
  
Gross
Gross
Cash
Net
through
as at
  
as at
 
Assets
Liabilities
Portfolio
  
Assets
Liabilities
Collateral
Derivatives
P&L
30.09.12
  
30.06.12
 
£m
£m
£m
  
£m
£m
£m
£m
£m
£m
 
  
£m
Sovereign
 1 
 (1)
 - 
  
 - 
 - 
 - 
 - 
 - 
 - 
  
 - 
Financial institutions
 1 
 - 
 1 
  
 1,227 
 (333)
 (894)
 - 
 - 
 1 
  
 1 
Corporate
 1 
 - 
 1 
  
 1 
 - 
 - 
 1 
 - 
 2 
  
 2 
                         
                       
Total
Fair Value through Equity
    
Available for Sale Assets as at 30.09.121
  
as at
 
 
         
Cost
AFS Reserve
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Sovereign
          
 1 
  
 - 
  
 1 
  
 1 
           
Held at Amortised Cost
    
Loans and Advances as at 30.09.12
  
Total
 
 
               
Impairment
      
as at
           
Gross
  
Allowances
  
Total
  
30.06.12
           
£m
  
£m
  
£m
 
  
£m
Residential mortgages
          
 6 
  
 - 
  
 6 
  
 8 
Corporate
          
 57 
  
 - 
  
 57 
  
 57 
Other retail lending
          
 25 
  
 (9)
  
 16 
  
 19 
                         
                   
Total
  
Total
Contingent Liabilities and Commitments
            
as at
  
as at
 
 
                   
30.09.12
  
30.06.12
                   
£m
  
£m
Corporate
                  
 3 
  
 3 
Other retail lending
                  
 11 
  
 17 
 
 
 
 
 
 
 
 
 
Cyprus
Trading Portfolio
  
Derivatives
Designated
      
 
 
Fair Value through
Trading
Trading
Net
          
at FV
Total
  
Total
Profit and Loss
Portfolio
Portfolio
Trading
  
Gross
Gross
Cash
Net
through
as at
  
as at
 
Assets
Liabilities
Portfolio
  
Assets
Liabilities
Collateral
Derivatives
P&L
30.09.12
  
30.06.12
 
£m
£m
£m
  
£m
£m
£m
£m
£m
£m
  
£m
Sovereign
 1 
 - 
 1 
  
 - 
 - 
 - 
 - 
 - 
 1 
  
 1 
Financial institutions
 3 
 - 
 3 
  
 94 
 (44)
 (50)
 - 
 - 
 3 
  
 6 
Corporate
 8 
 - 
 8 
  
 15 
 - 
 - 
 15 
 - 
 23 
  
 15 
           
Held at Amortised Cost
    
Loans and Advances as at 30.09.12
  
Total
 
 
               
Impairment
      
as at
           
Gross
  
Allowances
  
Total
  
30.06.12
           
£m
  
£m
  
£m
  
£m
Sovereign
          
 7 
  
 - 
  
 7 
  
 7 
Residential mortgages
          
 48 
  
 - 
  
 48 
  
 51 
Corporate
          
 125 
  
 (15)
  
 110 
  
 115 
Other retail lending
          
 18 
  
 - 
  
 18 
  
 6 
                         
 
 
                   
Total
  
Total
Contingent Liabilities and Commitments
            
as at
  
as at
 
 
                   
30.09.12
  
30.06.12
                   
£m
  
£m
Residential mortgages
                  
 1 
  
 1 
Corporate
                  
 87 
  
 101 
Other retail lending
                  
 32 
  
 20 
 
 
 
 
 
1        Cost' refers to the fair value of the asset at recognition, less any impairment booked. 'AFS Reserve' is the cumulative fair value gain or loss on the assets that is held in equity. 'Total' is the fair value of the assets at the
           balance sheet date.
 

Appendix V - Credit Market Exposures
 
Barclays Credit Market Exposures1
 
 
 
               
Nine Months Ended 30.09.12
 
 
 
As at 30.09.12
As at 30.06.12
As at 31.12.11
As at 30.09.12
As at 30.06.12
As at 31.12.11
  
Fair Value (Losses)/ Gains and Net Funding
Impairment (Charge)/ Release
Total (Losses)/ Gains
US Residential Mortgages
$m
$m
$m
£m
£m
£m
  
£m
£m
£m
ABS CDO Super Senior
2,479 
2,535 
2,844 
1,536 
1,615 
1,842 
  
(24)
(129)
(153)
US sub-prime and Alt-A2 
1,296 
1,621 
2,134 
803 
1,033 
1,381 
  
68 
(12)
56 
                     
Commercial Mortgages
                    
Commercial real estate loans and properties
4,553 
6,655 
8,228 
2,821 
4,240 
5,329 
  
78 
- 
78 
Commercial Mortgage Backed Securities2 
489 
1,208 
1,578 
303 
770 
1,022 
  
135 
- 
135 
Monoline protection on CMBS
5 
10 
14 
3 
6 
9 
  
- 
- 
- 
                     
Other Credit Market  
                    
Leveraged Finance3 
6,035 
6,090 
6,278 
3,739 
3,880 
4,066 
  
(42)
7 
(35)
SIVs, SIV -Lites and CDPCs
- 
- 
9 
- 
- 
6 
  
(1)
- 
(1)
Monoline protection on CLO and other
1,078 
1,351 
1,729 
668 
861 
1,120 
  
(30)
- 
(30)
CLO and Other assets2 
210 
450 
596 
130 
287 
386 
  
52 
- 
52 
                     
Total
16,145 
19,920 
23,410 
10,003 
12,692 
15,161 
  
236 
(134)
102 
 
 
.   Barclays credit market exposures arose before the market dislocation in mid-2007 and primarily relate to commercial real estate and leveraged finance
 
 
.   During 2012, credit market exposures decreased by £5,158m to £10,003m, reflecting net sales and paydowns and other movements of £4,796m, foreign exchange movements of £464m, offset by net fair value gains and impairment
       charges of £102m. Net sales, paydowns and other movements of £4,796m included:
 
 
        -      £2,361m of commercial real estate loans and properties including sale of BauBeCon for £898m in August, 100% stake in Archstone for £857m ($1,338m) and sale of Calwest for £341m ($550m) in September
 
 
        -       £817m commercial mortgage-backed securities
 
 
        -       £582m US sub-prime and Alt-A
 
 
        -       £366m monoline protection on CLO and other
 
 
        -       £296m CLO and Other assets
 
 
        -       £287m leveraged finance primarily relating to two counterparties
 
 
.   During Q3, credit market exposures decreased by £2,689m, reflecting net sales and paydowns and other movements of £2,575m, foreign exchange movements of £208m, offset by net fair value gains and impairment charges of £94m
 
 
 
 
 
1        As the majority of exposure is held in US Dollars, the exposures above are shown in both US Dollars and Sterling.
 
2       Collateral assets of £817m (31 December 2011: £2,272m) previously underlying the Protium loan are now included within the relevant asset classes as the assets are managed alongside similar credit market exposures.
         These assets comprised: US sub-prime and Alt-A £440m (31 December 2011: £965m), commercial mortgage-backed securities £247m (31 December 2011: £921m), CLO and Other assets £130m (31 December 2011: £386m).
 
3        Includes undrawn commitments of £183m (31 December 2011: £180m).
 

 
Appendix VI - Other Legal and Regulatory Matters
 
Other Legal and Regulatory Matters
 
 
.   Subsequent to reporting the investigations of the Financial Services Authority and Serious Fraud Office in July and August 2012 respectively, Barclays has been informed by the US Department of Justice (DOJ) and US Securities
      and Exchange Commission (SEC) that they are undertaking an investigation into whether the Group's relationships with third parties who assist Barclays to win or retain business are compliant with the United States Foreign
      Corrupt Practices Act. Barclays is investigating and fully co-operating with the DOJ and SEC 
 
 
.   The United States Federal Energy Regulatory Commission (FERC) Office of Enforcement (FERC Staff) has been investigating Barclays power trading in the western US with respect to the period from late 2006 through 2008. On 25
       October 2012, the FERC notified Barclays that it has authorised the issuance of a public Order to Show Cause and Notice of Proposed Penalties against Barclays in relation to this matter. The Order and Notice could be issued as
       early as today. Barclays intends to vigorously defend this matter
 

Appendix VII - Other Information
 
Other Information
      
       
Results Timetable1 
Date
    
 
 
Ex-dividend date
7 November 2012
  
Dividend Record date
9 November 2012
  
Dividend Payment date
7 December 2012
  
2012 Full Year Results Announcement and 2013 Investor Seminar
12 February 2013
  
 
 
Q1 2013 Interim Management Statement
24 April 2013
    
       
 
Nine Months Ended
Nine Months Ended
Change
Exchange Rates2 
30.09.12
30.09.11
30.09.11
3 
Period end - US$/£
1.61 
1.56 
(3%)
Average - US$/£
1.58 
1.62 
3%
Period end - €/£
1.25 
1.16 
(7%)
Average - €/£
1.23 
1.15 
(7%)
Period end - ZAR/£
13.33 
12.58 
(6%)
Average - ZAR/£
12.69 
11.23 
(12%)
       
Share Price Data
30.09.12
30.09.11
  
Barclays PLC (p)
214.85 
161.35 
  
Absa Group Limited (ZAR)
138.50 
134.34 
  
       
For Further Information Please Contact
      
       
Investor Relations
Media Relations
    
Charlie Rozes +44 (0) 20 7116 5752
Giles Croot +44 (0) 20 7116 6132
  
 
 
       
More information on Barclays can be found on our website: www.barclays.com
  
 
 
 
 
 
1        Note that these announcement dates are provisional and subject to change.
 
2       The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into Sterling for accounting    purposes. 
 
3        The change represents the percentage change in the sterling value of the relevant foreign currency on the basis of the exchange rates disclosed.  The change in exchange rates affects the amounts of foreign currency
           balances and transactions reported in the interim management statement.