Barclays(BCS)2023-10-23 16:00Financial Performance - Group return on equity (RoE) for Q3 2023 was 9.3% and return on tangible equity (RoTE) was 11.0%[14] - Profit before tax for Q3 2023 was £1.9 billion, a decrease from £2.0 billion in Q3 2022[18] - Group income increased by 5% year-on-year to £6.3 billion in Q3 2023[18] - Group profit before tax increased by 13% to £6,447 million, compared to £5,702 million in the previous year[22] - Profit before tax increased 10% to £4,580m, with a return on equity (RoE) of 11.1%[32] - Barclays Group's profit before tax for Q3 2023 was £1,885 million, a decrease of 4% from £1,964 million in Q2 2023[53] - Barclays Group reported an attributable profit of £1,274 million for Q3 2023, a decrease of 4.1% from £1,328 million in Q2 2023[141] - Profit after tax for the nine months ended 30 September 2023 was £5,151 million, an increase from £4,385 million in the previous period, representing a growth of 17.5%[131] Income and Revenue - Barclays UK income decreased by 2% to £1.9 billion, primarily due to the transfer of Wealth Management & Investments to Consumer, Cards and Payments[18] - Corporate and Investment Bank (CIB) income rose by 9% to £3.1 billion in Q3 2023[18] - Consumer, Cards and Payments (CC&P) income increased by 9% to £1.4 billion, benefiting from higher balances in US cards[18] - Group income rose by 3% year-on-year to £19,780 million, driven by higher interest rates and increased balances in US cards[28] - Total income increased to £14,164m, with Corporate and Investment Banking (CIB) income decreasing 5% to £10,220m[32] - Barclays UK reported total income of £1,873 million in Q323, a decrease of 4.5% from £1,961 million in Q223[56] - Barclays International achieved total income of £4,442 million in Q323, slightly up from £4,440 million in Q223[58] - The Consumer, Cards and Payments segment generated total income of £1,360 million in Q3 2023, an increase of 6.4% from £1,278 million in Q2 2023[63] Operating Expenses - Total operating expenses decreased by 10% to £4.0 billion in Q3 2023[18] - Total operating expenses decreased by 6% to £12,011 million, with litigation and conduct charges significantly reduced to £32 million from £1,518 million[22] - Total operating expenses decreased 8% to £8,559m, reflecting investment in the business[32] - Total operating expenses for the group were £12,011 million for the nine months ended September 30, 2023, a decrease from £12,727 million in the previous year, representing a reduction of 5.6%[135] Credit and Impairment Charges - Credit impairment charges were £0.4 billion, with a loan loss rate (LLR) of 42 basis points[18] - Credit impairment charges rose to £1,329 million, reflecting a loan loss rate (LLR) of 43 basis points[22] - Credit impairment charges for Barclays International rose by 71% to £1,037 million for the nine months ended September 30, 2023, compared to £527 million in the same period of 2022, reflecting a 97% increase[49] - Credit impairment charges for Barclays UK were £59 million in Q323, a decrease from £95 million in Q223[57] Capital and Ratios - Common Equity Tier 1 (CET1) ratio stood at 14.0% with risk-weighted assets (RWAs) of £341.9 billion[18] - The CET1 ratio increased to 14.0%, with CET1 capital rising by £1.1bn to £48.0bn[35] - The common equity tier 1 (CET1) ratio is expected to remain within the target range of 13-14%[28] - The Group's CET1 capital increased by £1.1 billion to £48.0 billion as of September 30, 2023, compared to £46.9 billion in December 2022[115] - The Group's overall capital requirement for CET1 is 11.8%, which includes a 4.5% Pillar 1 minimum and a 2.5% Capital Conservation Buffer[103] Assets and Liabilities - Total assets increased to £1,591.7 billion, driven by increased trading activity within Corporate and Investment Banking[28] - The total assets of Barclays Group increased to £1,591.7 billion as of September 30, 2023, compared to £1,549.7 billion at the end of Q2 2023[53] - Total liabilities rose to £1,522,746m as of September 30, 2023, compared to £1,444,439m at the end of 2022[129] Shareholder Information - The tangible net asset value per share increased to £316 as of September 30, 2023, up from £295 as of December 31, 2022[149] - The share price of Barclays PLC as of September 30, 2023, was 158.94 pence, an increase from 144.30 pence a year earlier, reflecting a growth of approximately 9.7%[1] - The number of shares outstanding for Barclays PLC was 15,239 million as of September 30, 2023, down from 15,871 million a year prior, indicating a reduction of about 4%[1] Economic Outlook - The Baseline scenario indicates that GDP growth remains weak, with UK and US unemployment rates expected to peak at 4.5% and 4.4% respectively in 2024[88] - Central banks are expected to continue raising interest rates, with the UK bank rate and US federal funds rate reaching peaks of 6.0% and 5.5% respectively during 2023[88] - UK GDP is projected to grow by 0.4% in 2023, with a forecast of 1.4% in 2025 and 2.0% in 2026[94] - The UK house price index (HPI) is projected to decline by 5.8% in 2023, with a recovery expected to 7.3% growth by 2027 in the Baseline scenario[94] Regulatory and Compliance - The MREL requirement, excluding the PRA buffer, was to hold £101.1 billion of own funds and eligible liabilities, equating to 29.6% of RWAs[113] - The Group's leverage ratio requirement is 4.1%, which includes a minimum requirement of 3.25% and additional buffers[107] - Barclays Group faces capital risk due to insufficient capital levels to support normal business activities and regulatory requirements[198]