Barclays : Q3 2020 Investor Presentation (PDF 956KB)

Barclays PLC

Q3 2020 Results

23 October 2020

Jes Staley

Barclays Group Chief Executive

Diversification is a key strength of Barclays

Continued resilient performance, despite the severe global macroeconomic downturn

Strong CIB performance helping to offset recent income headwinds in the consumer businesses

12%

22%

Q320 YTD

Group income by customer1

15%36%

57%

Wholesale

Banking fees Markets Corporate Business Banking

Barclays is relatively well positioned in the current rate environment, given the Group's low reliance on net interest income compared to peers

Appropriate level of provisioning, while maintaining a strong capital position

Allowed Barclays to help our customers and clients through the crisis and play our part in supporting the economy

Barclays expects to be in a strong position

to support the recovery and generate attractive returns in the future

5%

9%

Q320 YTD	37%
NII as % of total
income

63%

International Consumer & Payments

UK Consumer

37%

Net interest income

Net interest income

Other income

1 Excludes negative income from Head Office | Note: Charts may not sum due to rounding |

3 | Barclays Q3 2020 Results | 23 October 2020

Resilient performance in Q320 reflecting the Group's diversified business model

Resilient operating performance delivered Group PBT of £1.1bn

£5.2bn of income down 6% YoY, but CIB income up 11%, driven by a 29% increase in Markets income

Cost: income ratio of 67% reflecting short-term headwinds from spend on COVID-19 initiatives

Impairment of £0.6bn resulting in a loan loss rate of 69bps, materially lower than the H120 run-rate

CET1 ratio of 14.6%, 40bps higher in the quarter

Group Liquidity Coverage Ratio (LCR) of 181% and liquidity pool of £327bn, representing 23% of the Group's balance sheet

Q320 Financial highlights

£5.2bn Income

67% Cost: income ratio

£0.6bn Impairment

£1.1bn PBT

14.6% CET1 ratio

275p TNAV/share

181% LCR

4 | Barclays Q3 2020 Results | 23 October 2020

All businesses returned to profitability in Q320, with the benefit of the wholesale and consumer mix evident

• Group RoTE of 5.1% (5.5% excl. L&C) recovered from the Q220 low point of 0.7% (0.8% excl. L&C)
• • Barclays UK (BUK) RoTE of 4.5% (5.2% excl. L&C) recovered from the loss experienced in Q220, but remains materially below the historical performance of the business
  • Corporate and Investment Bank (CIB) has generated a consistently strong RoTE for the first three quarters of 2020. 9.5% (9.5% excl. L&C) RoTE in Q320 continues to support the Group RoTE, offsetting the consumer business weakness
  • Consumer, Cards & Payment (CC&P) RoTE of 14.7% (16.5% excl. L&C) returned to pre-crisis levels after the losses experienced in the first half of 2020

1 RoTE charts exclude L&C | 2 Includes Head Office |

Group2

BUK

BI

CIB

CC&P

RoTE1

Q119	Q219	Q319	Q419	Q120	Q220	Q320
9.6%	9.3%	10.2%	6.9%	5.1%		5.5%
				0.8%
16.4%		21.2%	18.7%
13.9%
				7.0%		5.2%
					(4.6%)
10.6%	10.8%	10.0%	6.0%	6.8%	5.7%	10.5%

9.5%	9.3%	9.2%		12.5%	9.6%	9.5%
			3.9%
15.4%	18.0%	14.0%	16.3%			16.5%
				(23.5%)	(19.6%)

5 | Barclays Q3 2020 Results | 23 October 2020

Consumer business activity recovered in Q320 from the April low point

Cards spending1

Merchant acquiring turnover2

Mortgages

Cards spending in the UK and US

continued to recover in Q320 from the

April low point

YoY change in monthly spend,

2020 vs. 2019 (%)

		UK credit				US credit			UK debit and
10%	cards						cards					credit cards
														2%
0%
(10%)															(13%)
(20%)
(30%)
													(20%)
(40%)		(36%)
(50%)			(44%)
(60%)									(55%)
Jan-20	Feb-20	Mar-20	Apr-20	May-20	Jun-20	Jul-20	Aug-20		Sep-20

Merchant acquiring turnover values continued to improve in Q320 from the April low point

YoY change in monthly turnover,

2020 vs. 2019 (%)

Corporate SME

30%	12%
20%
10%
0%	4%
(10%)

(20%)

(30%)(25%)

(40%)

(50%)

(60%)(57%)

(70%)

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Mortgage application values recovered as

lockdown measures were eased, with

pricing at attractive margins

Mortgage application values (£bn)

			4.3
			4.0
3.3	3.2	3.0
2.9		2.8

1.2

0.9

Jan-20

Feb-20

Mar-20

Apr-20

May-20

Jun-20

Jul-20

Aug-20

Sep-20

Certain headwinds to income in Barclays UK are expected to persist in 2021 including the low interest rate environment

The drivers of CC&P income are showing signs of recovery but the outlook remains uncertain

1 Data based on Barclays debit and credit card transactions, as per the monthly Barclays Spend Trends 2.0 report. UK credit cards spend excludes balance transfers | 2 Corporate includes turnover associated with Government savings products |

6 | Barclays Q3 2020 Results | 23 October 2020

Barclays has grown share in the Markets business since 2017, with a material outperformance versus peers in H120

Barclays share1

	FY17	FY18	FY19	H120
Total Markets	3.6%	4.2%	4.3%	5.1%
FICC	3.5%	3.9%	4.1%	4.9%
Equities	3.8%	4.6%	4.6%	5.5%

• Since 2017, Barclays has materially increased share in both FICC and Equities
• Barclays' Total Markets share has increased from 3.6% at FY17 to 5.1% at H120, an increase of 41%
• • FICC share has increased from 3.5% at FY17 to 4.9% at H120, an increase of 41%
  • Equities share has increased from 3.8% at FY17 to 5.5% at H120, an increase of 45%

Total Markets share change (FY17 to H120)1

FICC share

change (FY17

to H120)1

Equities share change (FY17 to H120)1

Barclays

Average US banks

Average European banks

US banks

European banks

+16%

+2% +19%

+5%

+5%

+6%

(2%)

(4%) (20%)

Barclays

Average US banks

Average European banks

+13%

+5% +19%

+4%

+6%

+2%

(1%)

(2%)

(9%)

Barclays

Average US banks

Average European banks

+20%

+21%

+7%

+4%

+18%

(1%)

(6%)

(4%)

(41%)

FY18 vs. FY17

FY19 vs. FY18

H120 vs. FY19

After a strong Q320 YTD CIB performance driven by Markets, the franchise is well positioned for the future

1 Source: Coalition, H120 Competitor Analysis. Share represents Barclays' proportion of the total Industry Revenue Pool. Analysis is based on Barclays' internal business structure and internal revenues. US banks comprised of JPM, Bank of America, Citi, GS and MS. European banks comprised of DB, CS, UBS, BNP, SocGen and HSBC |

7 | Barclays Q3 2020 Results | 23 October 2020

Remained open for business during the COVID-19 pandemic helping support the economy

	Supporting	Supporting		Supporting
		our communities
	customers	businesses
		and colleagues
Supported customers	Delivered UK Government	Used our reach to support communities
in financial need with	support measures for small businesses,	and helped colleagues to serve
payment holidays and fee waivers	large corporates and institutional clients	customers, clients, and their
US cards	UK mortgages			communities safely
Coronavirus Large Business
c.123k	Coronavirus
c.234k
	Interruption Loan Scheme	Business
	>640k	£100m
	(CLBILS)	Interruption
	payment holidays	c.£0.7bn	Loan Scheme	committed to
	provided to		(CBILS)	the COVID-19
	customers1		c.£2.3bn	Community Aid
UK personal	UK cards	c.£24.6bn		Package
loans and point
of sale finance	c.166k	of COVID-19
c.111k		support2
	c.£100m	Covid	Government-	65k
	Corporate
	of UK overdraft	Financing	backed Bounce	of 88k
	interest and	Facility (CCFF)	Back Loans	colleagues
	banking fees	c.£12.4bn	(BBLs)	working from
	waived		c.£9.2bn	home
1 Payment holidays granted as at 30 September 2020, total also includes German cards and loans, and Italian mortgages | 2 All business lending data as at 18 October 2020 and commercial paper issuance data as at 19 October 2020 |

8 | Barclays Q3 2020 Results | 23 October 2020

Tushar Morzaria

Barclays Group Finance Director

Q320 YTD Group highlights

Group RoTE of 3.8% with 4% positive cost: income jaws1

Financial performance1

Income

£16.8bn Q319 YTD: £16.3bn

Costs

£10.0bn Q319 YTD: £10.1bn

Cost: income ratio

59% Q319 YTD: 62%

Impairment

£4.3bn Q319 YTD: £1.4bn

PBT

£2.5bn Q319 YTD: £4.9bn

RoTE

3.8% Q319 YTD: 9.7%

EPS

8.0p Q319 YTD: 19.7p

CET1 ratio

14.6% Dec-19: 13.8%

TNAV per share

275p Dec-19: 262p

Liquidity coverage ratio

181% Dec-19: 160%

Loan: deposit ratio

70% Dec-19: 82%

• Income increased 3%, reflecting a 24% increase in CIB income, driven by a standout performance in Markets, more than offsetting income headwinds in BUK and CC&P
• Costs decreased 1%, delivering positive cost: income jaws of 4% and improved cost: income ratio of 59%
• Impairment increased to £4.3bn, reflecting the impact from revised IFRS 9 scenarios and £0.7bn in respect of single name wholesale loan charges
• • Impairment coverage ratios across portfolios have increased
  • Net write-offs were c.£1.4bn
• Generated PBT of £2.5bn, RoTE of 3.8% and EPS of 8.0p2
• CET1 ratio increased to 14.6%, up 80bps from FY19 reflecting profits, regulatory measures, and cancellation of the full year 2019 dividend payment
• TNAV increased 13p to 275p reflecting profits and favourable reserve movements
• Liquidity position remained of high quality and prudently positioned following a significant increase in deposits, resulting in a liquidity pool of £327bn and Liquidity coverage ratio of 181%
• Loan: deposit ratio reduced to 70% reflecting material deposit growth, partially offset by increased lending through government loan schemes

1 Relevant income statement, financial performance measures and accompanying commentary exclude L&C | 2 Q320 YTD statutory PBT of £2.4bn, RoTE of 3.6% and EPS of 7.6p |

10 | Barclays Q3 2020 Results | 23 October 2020

Q320 Group highlights

Barclays continued to be profitable in the third quarter supported by a strong balance sheet

Financial performance1

Income

£5.2bn Q319: £5.5bn

Costs

£3.4bn Q319: £3.3bn

Cost: income ratio

65% Q319: 59%

Impairment

£608m Q319: £461m

PBT

£1.2bn Q319: £1.8bn

RoTE

5.5% Q319: 10.2%

EPS

3.9p Q319: 7.2p

CET1 ratio

14.6% Jun-20: 14.2%

TNAV per share

275p Jun-20: 284p

Liquidity coverage ratio

181% Jun-20: 186%

Loan: deposit ratio

70% Jun-20: 76%

• Income decreased 6% as continued strong performance in CIB, particularly in Markets, was offset by income headwinds in BUK and CC&P
• • There was a gradual income improvement on Q220 in BUK and CC&P
• Costs increased slightly to £3.4bn, delivering a cost: income ratio of 65%
• Credit impairment charges increased £147m to £608m YoY, reflecting higher single name wholesale loan charges
• • The Q320 charge is £1.0bn lower than Q220
  • Net write offs were c.£0.5bn
• Generated PBT of £1.2bn, RoTE of 5.5% and EPS of 3.9p
• CET1 ratio of 14.6%, up 40bps from Q220 primarily driven by profits and lower RWAs
• • RWAs reduced £8.3bn from Q220 to £310.7bn, as limited procyclical RWA inflation was offset by lower loan demand, regulatory tailwinds and FX
• TNAV reduced by 9p to 275p as profits were more than offset by lower reserves

1 Relevant income statement, financial performance measures and accompanying commentary exclude L&C |

11 | Barclays Q3 2020 Results | 23 October 2020

Gradual QoQ income improvement in consumer businesses and YoY growth in CIB

				£6,283m
£5,541m	£5,301m				£5,338m
							£5,204m
	£2,617m		£3,617m
	£2,314m								Corporate and
							£3,316m		£2,905m
								Investment Bank
	£1,133m	£1,138m
		£1,027m					Consumer, Cards
						£876m
							£694m		and Payments
	£1,846m	£1,959m	£1,704m	£1,467m		£1,550m	Barclays UK
								Head Office
	(£55m)		(£110m)		(£65m)		(£139m)		(£127m)
	Q319	Q419	Q120	Q220	Q320

Income +11% YoY

• Markets income +29%, driven by +23% in FICC and +40% in Equities
• Banking fees -11% as strong performance in debt and equity capital markets was more than offset by reduced fee income in advisory
• Corporate lending income +19% whilst transaction banking income - 12%, reflecting balance growth offset by deposit margin compression

Income -23% YoY due to lower balances in US co-branded cards and reduced payments income

Income -16% YoY

• Lower UK rates, lower unsecured lending balances and residual COVID-19 customer support actions
• Partial offsets from BBLs and CBILS, deposit balance growth and the transfer of the Barclays Partner Finance portfolio

BUK and CC&P income continued to be challenged in Q320, but recovered gradually from Q220

12 | Barclays Q3 2020 Results | 23 October 2020

Consumer businesses income still facing headwinds from the low rate environment

• Balances in UK and US cards began to stabilise in Q320, driven in part by recovery in spend volumes from the low point in April
• Balances remain below prior year levels due to credit card spend continuing to be down YoY
• • UK cards balances also impacted by persistent debt regulation and actions taken to limit risk
  • US cards no longer originating own brand cards
• Effect of lower rates less significant in Q320 vs. Q220 due to deposit re-pricing taking effect from Q320 onwards
• • Expect continued lower structural hedge income across both product and equity structural hedges driven by maturing hedges being reinvested at lower rates
• FY20 BUK income headwinds, excluding the impact of lower Interest Earning Lending balances remain
• • c.£250m from the lower rate environment (c.£55m in Q320, c.£180m Q320 YTD)
  • c.£150m from the removal of certain fees and lower balances in overdrafts from High Cost of Credit Review (c.£50m in Q320, c.£100m in Q320 YTD)
  • c.£100m impact of COVID-19 customer support actions excluding government loan schemes (c.£30m in Q320, c.£100m in Q320 YTD)

Jan Feb Mar Apr May Jun

Jul

Aug Sep

Lower UK cards	(8%)	(9%)	(10%)	(10%)	(14%)	(18%)	(21%)	(19%)	(19%)
Interest Earning	2%	0%
Lending
		(13%)						(13%)
balances and					(24%)	(26%) (24%)
net spend YoY1					(49%)
				(55%)
Lower US cards	(1%)	(1%)	(5%)	(14%)	(17%)	(18%)	(20%)	(20%)	(21%)
End Net	6%	5%
Receivables
		(16%)			(22%)	(25%) (21%) (20%)
(ENR) and net
				(35%)
spend YoY				(44%)

Balances		Net spend

Reduced rate environment in the UK and US

2.0

1.5

1.0

0.5

0.0

Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
	GBP base rate			Fed upper rate			5Y GBP swap rate		5Y USD swap rate

Certain headwinds to income in Barclays UK are expected to persist in 2021 including the low interest rate environment

The drivers of CC&P income are showing signs of recovery but the outlook remains uncertain

1 UK credit cards spend excludes balance transfers |

13 | Barclays Q3 2020 Results | 23 October 2020

FY20 costs expected to be broadly flat versus FY191, with the Group evaluating actions to structurally reduce the cost base

Bank Levy

Corporate and Investment Bank

Consumer, Cards and Payments

Barclays UK

Head Office

	£3,534m
£3,293m	£226m
£1,712m	£1,691m
£570m	£549m
£952m	£1,023m
£59m	£45m
Q319	Q419

£3,253m	£3,310m	£3,391m	• Continued focus on cost discipline, but short-term
	headwinds remain from spend on COVID-19
			initiatives
			− Q320 costs increased by £81m YoY to £3.4bn,
			driven by spend on initiatives to support
		£1,716m	customers, businesses, communities and
£1,690m	£1,680m	colleagues
			• FY20 costs will in part be predicated on Q420
			income performance
			• UK bank levy will drive higher total operating
	£506m	£511m	expenses in Q420 vs. Q320
£529m	• Evaluating cost opportunities from new ways of
			working and changes to customer and client
			engagement during the crisis
£1,023m	£1,018m	£1,095m
£11m	£106m	£69m
Q120	Q220	Q320	Q420
			guidance

The Group expects FY20 costs to be broadly flat versus FY191. However, the Group will be evaluating actions to reduce structural

costs, which could result in additional charges, the timing and size of which remain to be determined

1 Excluding L&C |

14 | Barclays Q3 2020 Results | 23 October 2020

Q320 impairment charge reduced significantly from H120 quarterly run rate

2000

Group loan loss rate (bps)

£2,115m

223

£1,623m

£724m

179

Corporate and Investment Bank

Although reduced from the Q220 level, impairment increased £156m YoY primarily reflecting several single name wholesale loan charges

1500

1000

500

0

Consumer, Cards

Impairment decreased QoQ and YoY reflecting

£596m

and Payments

lower US cards balances

£885m

69

Impairment reduced from Q220, although was

60

52

£414m

Barclays UK

above the historical run-rate of c.£200m per

£608m

quarter due to the transfer of the Barclays Partner

£523m

Finance portfolio and higher Business Banking

£461m

impairment

£30m

£187m

£31m

£299m

£583m

£183m

Head Office

Impairment related to Italian mortgages portfolio

£321m

£481m

£101m

£190m

£233m

£25m

£30m

£8m

£4m

£5m

Q319

Q419

Q120

Q220

Q320

Provided macroeconomic assumptions remain consistent with expectations, we expect the H220 impairment charge to be

materially below that of H120 and it is likely that the full year 2021 impairment charge will be below that of 2020

15 | Barclays Q3 2020 Results | 23 October 2020

Q320 impairment was materially lower than the impairment build in Q120 and Q220

Components of impairment charge

2000

0

£2,115m

£370m

£1,623m

£424m

£523m

£1,340m

£608m

£461m

£1,013m

£409m

£469m

£443m

£405m

£52m

£54m

£186m

£155m

Q319

Q419

Q120

Q220

Q320

Q319-Q220

Single name wholesale loan charges

Impact of updated COVID-19 scenarios and weights, including benefit of support schemes

Other impairment

Q320

Single name wholesale loan charges

Impact of COVID-19 updates and other impairment

Baseline scenario macroeconomic variables (MEVs)

		Jun-20 MEVs	Sep-20 MEVs		Expected
									worst
		2020	2021	2022	2020	2021	2022		point
UK GDP1	Annual	(8.7%)	6.1%	2.9%	(10.3%)	6.2%	3.3%		(59.8%)
growth
UK unemployment	Quarterly	6.6%	6.5%	4.4%	5.5%	6.9%	6.2%		8.1%
average
US GDP1	Annual	(4.2%)	4.4%	(0.3%)	(4.4%)	3.8%	3.0%		(32.9%)
growth
US unemployment	Quarterly	9.3%	7.6%	5.5%	8.4%	6.9%	5.6%		13.0%
average

1 GDP based on Barclays Global Economic Forecasts; expected worst point based on seasonally adjusted annual rate (SAAR) |

• Baseline UK and US macroeconomic variables have been revised
• • The Sep-20 baseline scenario continues to assume a prolonged period of recovery in both economies
  • The unemployment rate in the UK and US, which is the key economic variable for unsecured lending impairment, is expected to be heightened for a prolonged period, with a quarterly average peak at 8.1% and 13.0% respectively

16 | Barclays Q3 2020 Results | 23 October 2020

Q320 impairment coverage ratios

Increased impairment coverage with the stage 2 unsecured coverage ratio of 23.8%

Wholesale loans

Credit cards, unsecured loans and other retail lending

Gross exposure (£m)

130,332 154,697 145,881

Impairment allowance (£m)

992 2,209 2,222

Coverage ratio

0.8% 1.4% 1.5%

Gross exposure (£m)

60,180 52,035 48,920

Impairment allowance (£m)	Coverage ratio
4,884	6,250	5,975	8.1%	12.0%	12.2%

3,386

2,359

3,282

3,409

10,432 43,635 35,707

117,541 107,676 106,892

Dec-19Jun-20 Sep-20

1,055 1,140

547 921 920

302

143 233 162

Dec-19Jun-20Sep-20

Home loans

23.2% 31.2% 34.7%

2.9% 2.1% 2.6%

0.1% 0.2% 0.2% Dec-19 Jun-20 Sep-20

3,463

10,7593,344

12,743 11,761

46,012

35,829 33,815

Dec-19Jun-20Sep-20

	2,535	2,423	68.5%	73.2%	72.5%
2,335
2,007	2,947	2,798	18.7%	23.1%	23.8%
542	768	754	1.2%	2.1%	2.2%
Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20

Total loans

154,911 157,141 158,303

432

502

497

0.3%

0.3%

0.3%

2,155 2,258 2,234

17,043 20,271 20,074

135,713	134,612	135,995	346	397		392	16.1%	17.6%	17.5%
					64		83		85		0.4%	0.4%	0.4%
						22		22			20
Dec-19Jun-20Sep-20	Dec-19Jun-20	Sep-20	Dec-19	Jun-20	Sep-20
Stage 1			Stage 2			Stage 3

345,423 363,873 353,104	6,308	8,961	8,694	1.8%	2.5%	2.5%
7,923	9,107	8,860
38,234	76,649	67,542		3,986	3,955	40.7%	43.8%	44.6%
			3,228
299,266	278,117	276,702		3,951	3,803	6.2%	5.2%	5.6%
			2,373
			707	1,024	936	0.2%	0.4%	0.3%
Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20

17 | Barclays Q3 2020 Results | 23 October 2020

Q320 impairment coverage ratios for credit cards, unsecured loans and other retail lending

UK and US cards coverage ratios of 16.4% and 14.2% respectively, with stage 2 coverage above 28%

UK cards

US cards

Gross exposure (£m)

16,457 13,639 12,821

796

899

5,059878

Impairment allowance (£m)	Coverage ratio
1,736	2,179	2,100	10.5%	16.0%	16.4%

Gross exposure (£m)

22,516 19,887 18,135

1,480

1,557

2,7941,405

Impairment allowance (£m)	Coverage ratio
2,059	2,766	2,583	9.1%	13.9%	14.2%
			79.6%	81.4%	81.7%

4,838 4,407

10,602

614	635	65.1%	68.3%	72.3%

518

1,356

21.6%

28.0%

28.5%

4,491

18,242

3,724

1,268	1,148
1,178	21.3%	24.5%	28.6%

7,902 7,536

Dec-19Jun-20 Sep-20

1,095		1,258
123	209	207	1.2%	2.6%	2.7%
Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20

13,839 13,006

Dec-19Jun-20Sep-20

	1,102	1,065
594
287	396	370	1.6%	2.9%	2.8%
Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20

UK Personal loans and Partner finance

12,386	9,814	8,525	665	766	748	5.4%	7.8%	8.8%
595
1,550	526							70.7%	77.9%	79.8%
	1,303	505
			1,478
10,241								10.5%	19.3%	16.2%
					410	403
	7,985	6,542	421
				162	251	240	0.8%	1.3%	1.6%
				105	105
				82
Dec-19Jun-20Sep-20	Dec-19Jun-20	Sep-20	Dec-19	Jun-20	Sep-20
Stage 1			Stage 2		Stage 3

Germany and other unsecured lending

8,821	8,695	9,439	424	541	544	4.8%	6.2%	5.8%
538	481	556
				40.6%	50.3%	42.6%
		2,152
1,356	2,111
				242	237	11.5%	11.3%	10.9%
6,927	6,103	6,731	218
			156	239	235
					0.7%	1.0%	1.1%
			50	60	72
Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20	Dec-19	Jun-20	Sep-20

18 | Barclays Q3 2020 Results | 23 October 2020

Payment holidays granted have reduced materially and balances outstanding are at low levels

UK mortgages1

UK cards1

Balances

17,960

20,348

14,919

4,359

Balances

644

810

663

120

outstanding (£m)

outstanding (£m)

Gross on

Payment holidays

9,672

2,769

857

697

Gross on

Payment holidays

644

166

63

86

balance sheet

£4.4bn granted (£m)

balance sheet

£0.1bn granted (£m)

exposure

3%

exposure

1%

(210)

(629)

(15)

(381)

(11,257)

£145.9bn

Roll offs (£m)2

(6,286)

£12.8bn

Roll offs (£m)2

Apr

May

Jun

Q3

Apr

May

Jun

Q3

• The average current LTV of balances on active payment holidays is 63%

• Balances outstanding on payment holidays of £120m

• Balances outstanding on payment holidays of £4.4bn

• September balances outstanding are 85% lower than the peak in May

• September balances outstanding are 79% lower than the peak in May

• c.84% of payment holiday roll offs have returned to making regular payments

• c.99% of payment holiday roll offs have returned to making regular payments

(where a payment has been due)3

(where a payment has been due)3

US cards1

UK personal loans1

Balances

669

879

567

90

Balances

520

706

610

169

outstanding (£m)

outstanding (£m)

Gross on

Payment holidays

64

96

Gross on

Payment holidays

500

187

59

47

balance sheet

£0.1bn granted (£m)

465

219

balance sheet

£0.2bn granted (£m)

exposure

<1%

(9)

(376)

(573)

exposure

4%

(1)

(155)

(488)

£18.1bn

Roll offs (£m)2

£4.7bn

Roll offs (£m)2

Apr

May

Jun

Q3

Apr

May

Jun

Q3

• Balances outstanding on payment holidays of £90m

• Balances outstanding on payment holidays of £169m

• September balances outstanding are 90% lower than the peak in May

• September balances outstanding are 76% lower than the peak in May

• c.81% of payment holiday roll offs have returned to making regular payments

• c.77% of payment holiday roll offs have returned to making regular payments

(where a payment has been due)3

(where a payment has been due)3

1 Q320 payment holidays data as at 30 September 2020 | 2 Roll offs represent accounts exiting the initial payment holiday where no further payment holiday has been applied prior to 30 September 2020. Customers returning to contracted monthly payments or requesting other forms of support are included in the roll off numbers. Roll offs include paydowns and exits | 3 Roll off month is the last month where no payment is due from the customer. September roll offs are required to make their first payment in October |

19 | Barclays Q3 2020 Results | 23 October 2020

Wholesale exposures are diversified and well covered, especially in selected vulnerable sectors

Wholesale exposure as at Sep-20 (1.5% coverage ratio)

										Selected	Coverage ratio
								£18.6bn		4.2%
		£145.9bn				sectors
£48.9bn	Group			Wholesale	£67.1bn		Other	1.9%
on balance				corporates
		sheet			exposure
		exposure			£145.9bn
		£353.1bn			(41% of total	£15.9bn		ESHLA1	0.6%
				exposure)
								£22.5bn		Financial	0.3%
									Institutions
		£158.3bn				£21.8bn		Debt Securities	0.1%
	Wholesale lending			Home loans		Other retail lending

Selected vulnerable sector exposure as at Sep-20 (4.2% coverage ratio)

Air travel

3.8%

£1.3bn

£127.3bn

£0.7bn

Shipping

1.7%

£1.4bn

Transportation

5.3%

Group

Selected

£3.3bn

Oil and gas

7.8%

£48.9bn

sectors

on balance

£18.6bn

£4.9bn

sheet

£18.6bn

(13% of total

Retail

3.7%

exposure

wholesale

£353.1bn

exposure,

5% of total

exposure)

£158.3bn

£7.0bn

Hospitality

2.8%

Other wholesale lending

Selected sectors

Home loans

Other retail lending

1 Education, Social Housing and Local Authority |

• Well diversified portfolio across sector and geography
• Majority of exposure (>65%) is to clients internally rated as Investment Grade or have a Strong Default Grade classification. Non-Investment Grade exposure is typically senior and lightly drawn
• c.30% of the book is secured, increasing to >60% for the selected vulnerable sectors
• c.25% synthetic protection provided by risk mitigation trades, increasing to >30% for some selected vulnerable sectors, resulting in a reduction in impairment of >£300m
  YTD
• Active identification and management of high risk sectors has been in place following the Brexit referendum with actions taken to enhance lending criteria and reduce risk profile
• Covenants in place based on leverage, LTVs, and debt service ratios for clients in high risk sectors
  Retail - top names are typically consumer staples, Investment Grade or secured against premises/subject to asset-backed loans
  Air travel - tenor of lending typically with an average life of 2-4 years, senior secured for high yield counterparties and focused on top tier airlines in the UK and US
  Oil & gas - exposure across a range of oil and gas sub- sectors globally, with majority to Investment Grade counterparties (including oil majors)

20 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays UK

RoTE of 5.2% reflects the impact of COVID-19 on the business1

Financial performance1	•
Income
£1.6bn Q319: £1.8bn
Costs
£1.1bn Q319: £1.0bn
Cost: income ratio	•
71% Q319: 52%
Impairment
£233m Q319: £101m	•
LLR
43bps Q319: 20bps

PBT	•
£221m Q319: £793m
RoTE	•
5.2% Q319: 21.2%
Average equity2

Income decreased 16% in a challenging operating environment

• Impact of lower UK rates, lower unsecured lending balances and residual COVID-19 customer support actions
• Partially offset by income from BBLs and CBILS, deposit balance growth, and the transfer of the Barclays Partner Finance (BPF) portfolio

NIM increased 3bps QoQ to 2.51%

• Q420 NIM expected to be broadly stable on Q320
• Expect to be at top end of NIM guidance range of 2.50- 2.60% for FY20

Costs increased 15% YoY as efficiency savings were more than offset by higher servicing and financial assistance costs, as well as the transfer of the BPF portfolio and further investment

Impairment reduced from Q220, although was above the historical run-rate of c.£200m per quarter due to the transfer of the BPF portfolio and higher Business Banking impairment

Net L&A increased 5% YTD to £204bn predominantly through BBLs and CBILS lending, growth in mortgages and the transfer of the BPF portfolio, partially offset by lower

UK cards balances

Q319 Q419 Q120 Q220 Q320

	1,846	1,959	1,704	1,467	1,550
Total	343	481	292	242	270
income	1,503	1,478	1,412	1,225	1,280
(£m)
		NII	Non-interest income

Net	3.10%	3.03%	2.91%	2.48%	2.51%
interest
margin
(NIM)

Impairment			96	111		1000
20	38	43
(£m) and					500
			583
loan loss		190	481
101
rate (bps)				233	0
		LLR		Impairment

L&A to	193	194	196	202	204
customers3
(£bn)

	£10.1bn Q319: £10.4bn	•
	RWAs	•
	£76.2bn Jun-20: £77.9bn

Customer deposits increased 13% YTD to £232bn reflecting lower spending levels and precautionary balance build

Loan: deposit ratio (LDR) of 91% reflects deposit growth and continued prudent approach to lending

Customer deposits4 (£bn)

		226	232
203	206	208

1 Relevant income statement, financial performance measures and accompanying commentary exclude L&C | 2 Average allocated tangible equity | 3 Loans and advances at amortised cost | 4 Customer deposits at amortised cost |

21 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays International

RoTE of 10.5% with stable income and impairment, and lower costs1

Financial performance1

Income

£3.8bn Q319: £3.8bn

• Income was stable at £3.8bn, reflecting strong

performance in CIB, offset by lower income in

CC&P

− Income diversified by business and

geography, with the US representing c.45%

Income balanced across businesses and geographies

Costs

£2.2bn Q319: £2.3bn

Cost: income ratio

59% Q319: 61%

Impairment

£0.4bn Q319: £0.4bn

PBT

£1.2bn Q319: £1.1bn

RoTE

10.5% Q319: 10.0%

Average equity2

£30.6bn Q319: £32.2bn

LLR

112bps Q319: 99bps

RWAs

£224.7bn Jun-20: £231.2bn

and the UK c.33% of income3

• Cost: income ratio decreased to 59%

• Impairment charge of £0.4bn, reflecting single

name wholesale loan charges in CIB and lower

US cards balances in CC&P

• RWAs decreased to £224.7bn due to reduced

client activity in CIB and lower US cards

balances, partially offset by a reduction in credit

quality within CIB

876

Business

diversity of

Q320 income

604 (£m)

610

8%

14%

Geographic diversity of H120 income3

(%)

33%

Markets

Banking fees

1,691 Corporate CC&P

	Americas
45%	UK
	Europe
	Other

1 Relevant income statement, financial performance measures and accompanying commentary exclude L&C | 2 Average allocated tangible equity | 3 BBPLC H120 income, based on location of office where transactions were recorded |

22 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays International: Corporate & Investment Bank

RoTE of 9.5% driven by strong income performance and positive jaws1

Financial performance1

Income

£2.9bn Q319: £2.6bn

Costs

£1.7bn Q319: £1.7bn

Cost: income ratio

• Overall CIB income increased 11% to £2.9bn
• • Markets income increased 29%, resulting in the best ever Q3 on a comparable basis3
  • FICC increased 23%, with particularly strong performance in credit, reflecting wider spreads
  • Equities had its best ever quarter in GBP terms3, increasing 40% driven by equity derivatives, due to

higher levels of client activity and volatility

FICC

• Banking fees decreased 11%, as strong performance in

Income

GBP basis (£m)

Q319 Q320

YoY

+23%

816 1,000

USD basis5 ($m)

Q319 Q320

YoY

+31%

999 1,309

59% Q319: 65%

Impairment

£187m Q319: £31m

PBT

£1.0bn Q319: £0.9bn

RoTE

9.5% Q319: 9.2%

Average equity2

£26.4bn Q319: £26.9bn

Total assets

£1,043bn Jun-20: £1,010bn

RWAs

£193.3bn Jun-20: £198.3bn

debt and equity capital markets was more than offset

by reduced fee income in advisory, which was impacted

by a reduced fee pool4 and a strong Q319 comparator

• Corporate lending income increased 19% reflecting Equities higher average drawn balances and fees on undrawn

balances

• Transaction banking income decreased 12% as deposit balance growth was more than offset by margin

compression

Markets

• Cost: income ratio decreased to 59% reflecting higher income
• Impairment charge of £187m primarily reflecting single

name wholesale loan charges	Banking
• Total assets increased to £1,043bn predominantly due	fees
to an increase in secured lending, and cash at central
banks and securities within the liquidity pool
	Corporate

+50%

+40%

	691	605	906
494

			+29%							+38%
1,310	1,691	1,605		2,214
			(11)%							(5)%
381	398	466		522
86	122	105		160
221	271
90		118
				Advisory		ECM		DCM
Q319		Q320		Q219			Q220
424	372	(12)%
195	232	+19%
		Corporate lending				Transaction banking

1 Relevant income statement, financial performance measures and accompanying commentary exclude L&C | 2 Average allocated tangible equity | 3 Period covering Q114 - Q320. Pre 2014 financials not restated following re-segmentation in Q116 | 4 Data source: Dealogic for the period covering 1 July to 30 September 2020 | 5 USD basis is calculated by translating GBP revenues by month for Q320 and Q319 using the corresponding GBP/USD FX rates |

23 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays International: Consumer, Cards & Payments

RoTE of 16.5%, with lower income offset by reduction in costs and impairment1

Financial performance1

Income

£0.9bn Q319: £1.1bn

Costs

£0.5bn Q319: £0.6bn

• Income decreased 23% YoY due to lower US		Q319	Q419	Q120	Q220	Q320
co-branded card balances and reduced		1,133	1,138	1,027		(23)%
payments income					876
	413	421		694
• Compared to Q220, income increased 26%3	Total	364
			358
Income				181
driven by spend recovery in the US and
(£m)	720	717	663
increased merchant acquiring turnover in		513	518
Payments, partially offset by lower US cards
balances		NII	Non-interest income

Cost: income ratio

58% Q319: 50%

Impairment

£183m Q319: £321m

•	Total US cards net receivables were down 21%
	YoY and 5% down on Q220
•	Costs decreased 10%, reflecting the transfer of
	the Barclays Partner Finance portfolio to BUK in
	Q220 and reduced marketing spend on US co-

US cards	26.5	27.1	24.7		(21)%
net	22.0
		21.0
receivables

($bn)

LLR

211bps Q319: 283bps

PBT

£0.2bn Q319: £0.3bn

RoTE

16.5% Q319: 14.0%

Average equity2

£4.2bn Q319: £5.3bn

RWAs

£31.4bn Jun-20: £32.9bn

branded cards in the current environment

• Impairment decreased QoQ and YoY reflecting

lower US cards balances

Impairment

(£m) and

LLR (bps)

Deposits4

(£bn)

Merchant acquiring payments processed (£bn)

900867714.2468 8913

6071552

8293976

64753910

8697815

8923

6071653

829307

64754920

869791

89330

6071754

6178938

4859307

63210

1578

3915

2000817473

63513160

43891

147

3980563

17639

5121504

379

1376

39895

176538

3541140

1369

132785

817143

635701

4133059

1817

398475

176336

35491

134907

13

398659

176235

3548110

13396

197

398558

176134

371

283	273	846	455	211	1500
321	299		414		1000
885	183	500
LLR	Impairment				0

+2%

16.4	15.8	16.3	18.0		16.9
49.1	48.0	48.6	49.3		49.9
			Private Banking			International Cards

+14%

68.6	68.5	66.4		78.3
57.8

1 Relevant income statement, financial performance measures and accompanying commentary exclude L&C | 2 Average allocated tangible equity | 3 10% excluding the non-recurrence of a c.£100m valuation loss in Barclays' preference shares in Visa Inc | 4 Includes deposits from banks and customers at amortised cost |

24 | Barclays Q3 2020 Results | 23 October 2020

Head Office

Income

(£m)

Costs1

(£m)

Loss before tax1 (£m)

RWAs (£bn)

Average tangible equity (£bn)

1 Excluding L&C |

Q319	Q220	Q320		•	Q320 negative income of £127m included:
					- c.£30m residual negative income impact
					from legacy capital instruments
(55)	(139)	(127)
			- Certain negative treasury items
				•	- Hedge accounting losses
				Q320 costs increased to £69m YoY1, including
					COVID-19 Community Aid Package donations
(59)	(106)	(69)

(116)	(318)	(191)

13.4	9.9	9.8

5.8	6.4	7.6

25 | Barclays Q3 2020 Results | 23 October 2020

Q320 CET1 ratio increased to 14.6%

Reflecting resilient profits and reduced RWAs

CET1 ratio1 of 14.6% reflecting:

			14bps	2bps	24bps	10bps
		40bps
	14.2%	14.2%	14.5%	14.5%	14.5%	14.6%	14.6%
	Jun-20	Profit after tax,	Impairment	IFRS 9	RWA	Other	Sep-20
		excl.		relief	excl. IFRS 9	movements
		impairment			and FX 2
CET1 capital:	£45.4bn	£1.3bn	(£0.5bn)	£0.1bn		(£0.9bn)	£45.5bn
RWAs:	£319.0bn				(£5.2bn)	(£3.0bn)	£310.7bn

• 40bps of profit after tax, excluding impairment charges
• 2bps increase in IFRS 9 transitional relief
• 24bps of RWA movements excluding IFRS 9 impact and FX2

Partly offset by:

• 14bps of impairment charges
• 10bps from other movements

Sep-20 UK leverage ratios

• Spot: 5.2%
• Average: 5.1%

1 CET1 ratio is currently 330bps above the MDA hurdle. The fully loaded CET1 ratio was 13.9% as at 30 September 2020 | 2 FX on credit risk RWAs | Note: Chart may not sum due to rounding |

26 | Barclays Q3 2020 Results | 23 October 2020

RWAs decreased over Q320

RWAs reduced as limited procyclical RWA inflation was more than offset by lower loan demand, regulatory tailwinds and FX

Jun-20

Credit risk book quality changes

Credit risk - net lending

Credit risk -

reg. tailwinds

Counterparty

credit risk

Market risk

FX 1

Other

Total RWAs (£bn)

				• Anticipated procyclicality impacts only partially materialised in
	319.0			the quarter, with a £3.3bn increase in credit risk RWAs from
				asset quality deterioration
		3.3	• This was more than offset by a £7.4bn decrease in credit risk
		RWAs, reflecting:
Of which:	3.9	• £3.9bn decrease in credit risk due to book size, reflecting
•	RCF net repayments £2.2bn	£2.2bn of net repayments of revolving credit facilities
•	Other lending £1.7bn			(RCFs), and £1.7bn decrease mainly driven by retail lending,
		3.5		net of lending through government schemes
				• £3.5bn regulatory tailwinds, largely driven by SME support
	1.4			factor
				• Counterparty credit risk and market risk net decrease of £1.1bn
	0.3			reflecting market volatility
				• We continue to support the economy with new lending and
	3.0			participation in government support schemes
				• Further RWA procyclicality could materialise over the next few
	0.1			quarters

Sep-20310.7

1 FX on credit risk RWAs |

27 | Barclays Q3 2020 Results | 23 October 2020

Continue to manage CET1 ratio1 with appropriate headroom above MDA through the stress

Illustrative evolution of minimum CET1 requirements and buffers

MDA	Jun-20:		Sep-20:
14.2%		14.6%
hurdle
3.0%		3.3%
12.5%			Down
headroom	11.2%	headroom
1.1%
130bps	0.0%		0.0%	11.3%	120bps
10bps
2.5%	2.5%	2.5%
1.5%	1.5%		1.5%
2.9%	2.7%		2.8%

4.5%	4.5%	4.5%
	Previous Dec-20		Jun-20		Sep-20
	requirement 3		requirement 2	requirement 2
Pillar 1 requirement		G-SII buffer		Countercyclical Buffer (CCyB)
Pillar 2A CET1 requirement		Capital Conservation Buffer (CCB)

• Barclays intends to manage its capital position to enable it to support customers whilst maintaining appropriate headroom over the MDA hurdle, which is currently 11.3%2
• Headroom above MDA increased to 330bps as the regulators introduced measures to preserve the flexibility banks needed to extend credit to the wider economy, whilst Barclays consistently achieved strong capital accretion in each quarter of 2020
• The Group remains in a strong capital position and is confident of its capital generation capacity over time, acknowledging likely headwinds to the CET1 ratio from procyclical effects on RWAs and reduced benefit from transitional relief on IFRS 9 impairment

The Board recognises the importance of capital returns to shareholders and will provide an update on its policy and dividends

at FY20 results

1 CET1 ratio calculated applying the transitional arrangements of the CRR as amended by CRR II applicable as at the reporting date | 2 Barclays' MDA hurdle at 11.3% reflecting the new Pillar 2A requirement as per the PRA's ICR effective from 23 July 2020. Jun-20 MDA hurdle at 11.2% applies the new Pillar 2A requirement as at 23 July 2020 to the Jun-20 RWAs | 3 Previously expected Dec-20 requirement, following revision of the UK CCyB and Pillar 2A requirements by the PRA in December 2019 |

28 | Barclays Q3 2020 Results | 23 October 2020

High quality and conservatively positioned liquidity and funding position

Highly liquid, comfortably exceeding minimum requirements

Conservative loan: deposit ratio2

Liquidity Coverage Ratio (LCR)

154% 169% 160% 186% 181%

Minimum requirement:

100%

31-Dec-1731-Dec-1831-Dec-1930-Jun-2030-Sep-20

Liquidity
220		227		211		298		327
pool1 (£bn)
Liquidity
75		90		78		135		143
surplus (£bn)

• Quality of the liquidity pool remains high, with the majority held in cash and deposits with central banks, and highly rated government bonds
• The change in the liquidity pool, LCR and surplus year to date is driven by a 19% deposit growth, and reflects actions to maintain a prudent funding and liquidity position in the current environment
• Liquidity pool of £327bn represents 23% of Group balance sheet

			L&A3 (£bn)		Deposits3 (£bn)		LDR
83%	82%	76%	70%

	395		416	355	467	495
326	339		344
31-Dec-18	31-Dec-19	30-Jun-20	30-Sep-20

• Loan: deposit ratio of 70% as at 30 September 2020, down 6% QoQ as deposits increased by £28bn, while loans and advances decreased by £11bn

Well positioned for future MREL requirements

32.8%		• Issued c.£6.6bn equivalent of
29.9%	MREL year to date
		- Continue to expect c.£7-
		8bn of MREL issuance
		throughout 2020
Sep-20	Jan-22
HoldCo MREL	Illustrative
position	requirement4

1 Liquidity pool as per the Group's Liquidity Risk Appetite (LRA) | 2 Loan: deposit ratio is calculated as loans and advances at amortised cost divided by deposits at amortised cost | 3 At amortised cost | 4 Based on current Pillar 2A requirement. 2022 requirements subject to BoE review |

29 | Barclays Q3 2020 Results | 23 October 2020

Outlook: Diversification delivering resilient performance

Certain headwinds to income in Barclays UK are expected to persist in 2021 including the low interest rate environment

The drivers of CC&P income are showing signs of recovery but the outlook remains uncertain

After a strong Q320 YTD CIB performance driven by Markets, the franchise is well positioned for the future

The Group expects FY20 costs, excluding litigation and conduct, to be broadly flat versus FY19. However, the Group will be evaluating actions to reduce structural costs, which could result in additional charges, the timing and size of which remain to be determined

Provided macroeconomic assumptions remain consistent with expectations, we expect the H220 impairment charge to be materially below that of H120 and it is likely that the full year 2021 impairment charge will be below that of 2020

The Group remains in a strong capital position and is confident of its capital generation capacity over time, acknowledging likely headwinds to the CET1 ratio from procyclical effects on RWAs and reduced benefit from transitional relief on IFRS 9 impairment

The Board recognises the importance of capital returns to shareholders and will provide an update on its policy and dividends at FY20 results

Note: Outlook remains uncertain and subject to change depending on the evolution and persistence of the COVID-19 pandemic and the outcome of Brexit negotiations |

30 | Barclays Q3 2020 Results | 23 October 2020

Appendix

Support for customers in the UK1

Mortgages

Personal loans and

point of sale financing

Overdrafts

Credit cards

Vulnerable customers

and key workers

• Mortgage payment holidays granted for c.123,000 accounts
• 12 month interest only payments granted
• Payment holidays granted for c.111,000 personal loan and point of sale finance accounts
• Provided an interest free buffer as well as reduced and capped charges on overdrafts for 5.4 million customers
• Credit card payment holidays granted for c.166,000 accounts
• Late payment and cash advance fees waived for 8 million UK card customers
• 260,000 calls handled per week during the peak of the crisis, significantly up due to COVID-19
• NHS and key workers proactively identified and moved to the front of the queue

1 Payment holiday data as at 30 September 2020. All other metrics as at 16 October 2020 |

32 | Barclays Q3 2020 Results | 23 October 2020

Support for businesses1

Existing lending

and withholding fees

Supporting the

UK Government's

initiatives

Helping business and institutions to access the

global capital markets

• £14bn three year lending fund for UK SMEs
• Over £50bn of lending limits available to UK clients
• Free banking and overdraft fees waived for 650,000 UK SMEs
• 12-monthcapital repayment holidays for most loans over £25,000
• c.296,000 Government-backedBounce Back loans approved with a value of c.£9.2bn, c.9,700 Coronavirus Business Interruption Loan Scheme (CBILS) loans approved with a value of c.£2.3bn, and c.110 Coronavirus Large Business Interruption Loan Scheme (CLBILS) loans approved with a value of c.£0.7bn
• Central role in arranging c.£12.4bn of commercial paper issuance for clients through the Covid
  Corporate Financing Facility (CCFF)
• Sole relationship bank supporting the UK Government with the Coronavirus Job Retention Scheme distributions to furloughed workers and Self-employmentIncome Support Scheme
• Led deals for 73 governments, government related clients and supranationals around the world in Q2 and Q3, raising £243bn. This includes deals for 15 European sovereigns, raising £77bn
• Underwrote over £1tn of equity and debt new issuance in Q220 and Q320
• In ECM supported 19 companies in the UK during Q220 and Q320 to raise £6.9bn

1 All business lending data as at 18 October 2020 and commercial paper issuance data as at 19 October 2020. All other metrics as at 16 October 2020 |

33 | Barclays Q3 2020 Results | 23 October 2020

Support for our communities and colleagues1

Supporting

communities

Supporting colleagues

• £100m committed to the COVID-19 Community Aid Package (for charity partners primarily in the UK, US, and India)
• Extended LifeSkills and Digital Eagles programmes to support home schooling and fraud prevention
• 65,000 of 88,000 colleagues working from home
• 3,000 of 4,000 UK call centre staff equipped with IT to work from home
• Enhanced wellbeing offering to help colleagues manage their physical and mental health
• Paid leave or reduced hours for colleagues caring for dependents, including children
• Four weeks paid leave for UK staff volunteering to support health or social care
• Used existing programmes to support any Armed Forces Reservists who were called up

1 Metrics as at 16 October 2020 |

34 | Barclays Q3 2020 Results | 23 October 2020

Our ambition is to be a net zero bank by 2050

Playing a leading role in tackling climate change

1. Our ambition is to be a net zero bank by 2050
2. • Includes net zero direct and indirect emissions, and for the business activities we finance around the world, across all sectors, by 2050
3. Our commitment is to align our entire portfolio of financing activities to the Paris Agreement
4. • We will achieve this through a clear strategy with targets and regular reporting, starting with, but not limited to, the power and energy sectors

3 Resolution put forward by the Board at the AGM on 7 May setting out our commitment to tackling climate change

4 Increasing restrictions in particular energy sectors

• Increased prohibitions on thermal coal, only financing entities where thermal coal represents less than 30% of revenue by 2025 and less than 10% of revenue by 2030
• No financing for energy projects in the Arctic Circle
• Helping to reduce the environmental footprint of Oil Sands
• • Only financing clients who plan to materially reduce emissions intensity
  • Considering the transition for the workforce and communities dependent on the industry in Canada
• No financing for EU/UK fracking and strengthened due diligence for fracking in the rest of the world

5 Increasing green financing to £100bn by 2030

• Commitment to further increase green financing

We have engaged extensively with shareholders and other stakeholders

We will provide more granular detail on metrics and targets in November 2020

35 | Barclays Q3 2020 Results | 23 October 2020

Interest rate sensitivity

Illustrative sensitivity of Group NII to a 10bps and 25bps parallel downward shifts in interest rates1

Change in NII based on illustrative scenario (£m)

10bps downward parallel shift in interest rates

Year 1	Year 2	Year 3
c.(200)	c.(250)	c.(300)

25bps downward parallel shift in interest rates

Year 1	Year 2	Year 3
c.(500)	c.(600)	c.(700)

Commentary/assumptions

• This analysis is based on the modelled performance of the consumer and corporate banking book, and includes the impact of both the product and equity structural hedges
• It assumes an instantaneous parallel shift in interest rate curves and does not apply floors to shocked market rates
• The NII sensitivity is calculated using a constant balance sheet,
  i.e. maturing business is reinvested at a consistent tenor and margin
• The sensitivity scenario illustrated suggests a consideration must be made in relation to our ability to pass through rate cuts to deposit holders as rates trend lower, including in a negative rate environment. The worsening impact versus H120 is primarily driven by margin compression on the growing deposit base. This scenario does not reflect pricing decisions that would be made in the event of rate falls and is provided for illustrative purposes only
• The sensitivities illustrated do not represent a forecast of the effect of a change in interest rates on Group NII
• Combined gross equity and product structural hedge contribution in Q320 was £0.4bn and £1.3bn in Q320 YTD

1 This sensitivity is provided for illustrative purposes only and is based on a number of assumptions regarding variables which are subject to change. Such assumptions might also differ from those underlying the AEaR calculation in the Annual Report. This sensitivity is not a forecast of interest rate expectations, and Barclays' pricing decisions in the event of an interest rate change may differ from the assumptions underlying this sensitivity. Accordingly, in the event of an interest rate change the actual impact on Group NII may differ from that presented in this analysis. The model does not apply floors to shocked market rates |

36 | Barclays Q3 2020 Results | 23 October 2020

Key macroeconomic variable assumption trends

GDP annualised

10.0%

5.0%		2.3%		3.8%	3.3%	3.0%
1.4%		6.2%
0.0%
		(4.4%)
(5.0%)			(10.3%)
(10.0%)
(15.0%)		2019	2020	2021		2022

House price index QoQ2

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

(1.0%)

(2.0%)

Q120

Q220

Q320

Q420

Q121

Q221

Q321

Q421

Q122

Q222

Q322

Q422

1 Quarterly average | 2 Halifax All Houses, All Buyers index

|

UK Baseline

Unemployment rate1

14.0%13%

12.0%

10.0%8%

8.0%

6.0%

4.0%

2.0%

0.0%

Q120

Q220

Q320

Q420

Q121

Q221

Q321

Q421

Q122

Q222

Q322

Q422

Bank rate / Fed funds rate

1.4%

1.2%

1.0%

0.8%

0.6%

0.4%

0.2%

0.0%

(0.2%)

Q120

Q220

Q320

Q420

Q121

Q221

Q321

Q421

Q122

Q222

Q322

Q422

US Baseline

37 | Barclays Q3 2020 Results | 23 October 2020

Retail portfolios in the UK and US prudently positioned ahead of the crisis

UK

secured

UK

unsecured

US

cards

• Focused on growing mortgage book within risk appetite
• c.50% average LTV of mortgage book stock
• Buy-to-Letmortgages represent only 14% of the book
• Early signs of credit deterioration following COVID-19 pandemic
• A suite of prudent risk actions taken, suspending proactive growth activity and reducing exposure/limits
• 0% balance transfers followed prudent lending criteria, with 96% of the balances having a duration of <24 months
• Diversified portfolio across segments with good risk/return balance
• Continuing our focus to shift strategy to co-branded cards whilst scaling back our branded cards presence
• Arrears rates improved in Q320, with delinquency trends relatively stable in recent years

UK mortgage balance growth within risk appetite

UK cards arrears rates increased marginally year-on-year

US cards arrears rates remained broadly stable year-on-year

H119		FY19			H120
£138.3bn		£143.3bn			£145.2bn
67.1%		67.9%			68.4%
50.1%		51.1%			51.5%
Average LTV on flow	Average LTV on stock	Gross L&A
Q319	Q419	Q120	Q220	Q320
£14.9bn	£14.7bn	£13.6bn	£11.5bn	£10.7bn
1.7%	1.7%	1.8%		2.0%	1.7%
0.8%	0.8%	0.8%		1.0%	0.8%
30 day arrears	90 day arrears		Net receivables
Q319	Q419	Q120	Q220	Q320
$26.5bn	$27.1bn	$24.7bn	$22.0bn	$21.0bn
2.6%	2.7%	2.7%		2.4%	2.3%
1.3%	1.4%	1.5%		1.4%	1.1%
30 day arrears	90 day arrears		Net receivables

38 | Barclays Q3 2020 Results | 23 October 2020

UK cards conservatively positioned since the EU referendum, having reduced balances and taken other risk actions

UK cards balances have decreased whilst arrears rates are stable (£bn)1

£15bn	16.2	16.2	16.5	16.1	16.2	16.3	16.4	15.2	15.2	15.3	15.3	15.0	15.1	14.9	14.7	13.6	11.5 10.7
£10bn	2.3% 2.0%	1.9%	2.0%	2.0%	1.9%	1.8%	2.0%	1.9%	1.8%	1.9%	1.9%	1.8%	1.7%	1.7%	1.8%	2.0% 1.7%

£5bn
1.2%	1.0%	0.9%	0.9%	0.9%	0.9%	0.8%	0.9%	0.9%	0.9%	0.9%	0.9%	0.9%	0.8%	0.8%	0.8%	1.0% 0.8%
£0bn
			30 day arrears		90 day arrears		Net receivables

	Q216	Q316	Q416	Q117	Q217	Q317	Q417	Q118	Q218	Q318	Q418	Q119	Q219	Q319	Q419	Q120	Q220	Q320
30 day	376	328	315	326	328	310	308	320	312	302	307	314	290	275	265	271	257	203
arrears £m
90 day	193	162	146	153	155	147	141	149	150	143	145	149	141	132	128	124	133	92
arrears £m

YoY change in net credit card lending

5%

0%

(5%)

(10%)

(15%)

(20%)

(25%)

(30%)

2016	2017	2018	2019	2020 YTD
		UK Cards		BoE net UK credit card lending2

• A suite of prudent risk actions were taken following the EU referendum in 2016, suspending some proactive growth activity and reducing exposure/limits by 13% (£8bn)
• These risk actions resulted in UK cards balances reducing from £16.2bn in Q216 to £14.7bn in Q419. This positioned Barclays well going into the current crisis, having not grown balances during this period
• We have seen early signs of credit deterioration following the pandemic, however the book has benefitted from limited late vintage lending in recent years
• Overall promotional balances have reduced by one third since Q419, as consumers deleveraged and we have engaged in limited balance growth activity

1 The material reduction in balances in Q118 can be attributed to the implementation of IFRS on 1 January 2018 | 2 Source: Bank of England: Monthly amounts outstanding of monetary financial institutions' sterling net credit card lending to individuals (in sterling millions) not seasonally adjusted. 2020 YTD Bank of England data to August month end |

39 | Barclays Q3 2020 Results | 23 October 2020

Loans and advances at amortised cost by selected sectors

As at 30.09.20		Gross exposure (£m)			Impairment allowance (£m)
Stage 1	Stage 2	Stage 3	Total	Stage 1		Stage 2	Stage 3	Total
Air travel	776	418	66	1,260	1		23	24		48
Hospitality and leisure	3,633	3,103	243	6,979	11		113	74		198
Oil and gas	969	2,017	346	3,332	5		82	174		261
Retail	2,936	1,771	237	4,944	13		64	104		181
Shipping	390	270	6	666	1		7	3		11
Transportation	895	369	126	1,390	5		22	47		74
Total	9,599	7,948	1,024	18,571	36		311	426		773
Total of Wholesale exposures	9%	22%	31%	13%	22%		34%	37%		35%
As at 30.06.20		Gross exposure (£m)			Impairment allowance (£m)
Stage 1	Stage 2	Stage 3	Total	Stage 1		Stage 2	Stage 3	Total
Air travel	1,018	462	69	1,549	-	14	25		39
Hospitality and leisure	3,567	3,600	236	7,403	18	121	75		214
Oil and gas	1,427	2,389	407	4,223	19	99	185		303
Retail	2,954	2,260	297	5,511	37	46	101		184
Shipping	355	369	6	730	1	8	3		12
Transportation	818	358	119	1,295	4	21	46		71
Total	10,139	9,438	1,134	20,711	79	309	435		823
Total of Wholesale exposures	9%	22%	33%	13%	34%	34%	41%		37%

40 | Barclays Q3 2020 Results | 23 October 2020

Q320 TNAV movement

TNAV reduced 9p to 275p

TNAV (pence per share)

				•
4	1	5
		4
		2	2
			1
				•
284
				275

Jun-20	Earnings FVOCI reserve Own credit	Currency	Pension re-	Employee	Cash flow	Sep-20
	reserve	translation	measurement share awards hedge reserve
		reserve	reserve

TNAV reduced by 9p to 275p due to:

• 5p reduction in the own credit reserve
• 4p reduction in the Currency Translation Reserve (CTR), due to the weakening of USD against GBP of c.4%
• 5p of other movements

Partially offset by:

• 4p of earnings
• 1p from Fair Value through Other Comprehensive Income (FVOCI) reserve movements

41 | Barclays Q3 2020 Results | 23 October 2020

IFRS 9 transitional relief at c.75bps

Impairment migration to stage 3 would lead to capital impact as it is not eligible for transitional relief

Constructive regulatory action in Q220 gave greater relief

for stage 1 and 2 impairments

• 100% transitional relief for modified impairment post Dec-19 now applied until end-2021
• Transitional relief schedule for static component remained as before
• Total post-tax IFRS 9 transitional relief now stands at £2.5bn or c.75bps capital, broadly unchanged compared to Jun-20

IFRS 9 Transitional relief CET1 add-back (£bn)

			£2.5bn			£2.5bn
	£1.1bn	1.6			1.6		Modified
1.1							Static
	0.9	0.9
	Dec 19	Jun 20			Sep 20
	Relief Schedule		Pre-2020		2020 onwards
	2019		85%
	2020		70%		100%
	2021		50%		100%
	2022		25%		75%
	2023			50%
	2024				25%

Prudently positioned CET1 ratio in the event of stage migration

14.6%	CET1 ratio decline through:
•	Potential migration of impairments
IFRS 9	•	into stage 3
Amortisation of transitional relief
transitional relief
c.75bps

Sep-20

CET1 ratio trajectory

• IFRS 9 transitional relief applies to stage 1 and 2 impairments
• Our capital planning allows for decline in CET1 ratio as we progress through the stress from a position of strength
• Transitional basis of capital remains the relevant measure for our capital adequacy assessment by regulators

42 | Barclays Q3 2020 Results | 23 October 2020

Constructive regulatory actions supporting our capital position

Many regulatory actions in place for the medium term

and beyond

CET1 requirement

• Modification of Pillar 2A requirement1

CET1 capital

• IFRS 9 transitional relief on new Covid-19 related expected credit loss provisions2
• CRR software intangibles change (c.30bps expected benefit)3
• PVA4

RWAs

• Market risk changes, including VaR back-testing2,5,6

Expected timeline

FY20

FY21

FY22

FY23

FY24

Q1 Q2 Q3

Pending PRA review

Applies under CRR 'Quick Fix'

1 The Pillar 2A requirement will continue to move, given the changes outlined in the new methodology outlined in the 7 May 2020 statement by the PRA | 2 Measures outlined in Regulation (EU) 2020/873, effective on 27 June 2020, as part of the CRR II 'Quick Fix' package, and adopted in H1 2020 reporting | 3 As outlined in EBA Consultation Paper EBA/CP/2020/11 on 9 June 2020. As noted in the PRA statement on the CRR 'Quick Fix' package published on 30 June 2020, the PRA will require more information on the software intangibles change, which could result in further changes to the Pillar 2 requirement. As referenced in the Regulatory Technical Standards EBA/RTS/2020/07 published on 14 October 2020, the regulatory amortisation period for software will be based on a 3 year time frame | 4 Measures adopted as part of amendments to Regulatory Technical Standard on Prudential Valuation | 5 :As per PRA guidance (30 March 2020) which allows the offset of market risk increases due COVID-19 related back testing exceptions against risks-not-in-VAR (RNIV); post Q3-20, as per CRR II "Quick Fix", discounting of COVID-19 exceptions is subject to PRA approval which has been granted for those exceptions observed to date | 6 Timeline refers to VaR back-testing|

43 | Barclays Q3 2020 Results | 23 October 2020

2020 pension update

Capital benefit of £250m in Q2 due to UK Retirement Fund (UKRF) Trustee investment in Senior Notes

• As at 30 September 2019, the triennial valuation showed a funding deficit of £2.3bn with the difference to the IAS 19 surplus representing a different approach to setting the discount rate and a more conservative longevity assumption for funding
• The Bank asked the UKRF Trustee to consider an investment in a gilt backed note (similar to the issued note in December 2019) in order to manage the capital impact of
  2020 contributions to the UKRF. The UKRF Trustee agreed and:
• 1. In June 2020, the Bank paid £500m to the UKRF as 2020 deficit contributions; and
  2. In June 2020, the UKRF subscribed for non-transferrable listed senior fixed rate notes for £750m, backed by UK gilts (the Senior Notes). These Senior Notes entitle the UKRF to semi-annual coupon payments for five years, and full repayment of the subscription in cash in three equal tranches in 2023, 2024, and at final maturity in 2025
• As a result of the investment in Senior Notes, the regulatory capital impact of the £500m deficit contribution paid on 12 June takes effect in 2023, 2024 and 2025 on maturity of the notes. The £250m additional investment by the UKRF in the Senior Notes has a positive capital impact in 2020 which is reduced equally in 2023, 2024 and 2025 on the maturity of the notes
• As at 30 June 2020, the Group's IAS 19 pension surplus across all schemes was £2.5bn (December 2019: £1.8bn). The UKRF, which is the Group's main scheme, had an
  IAS 19 pension surplus of £2.8bn (December 2019: £2.1bn). The movement for the UKRF was driven by higher than assumed asset returns and lower expected long- term price inflation, partially offset by a decrease in the discount rate

Capital impact of deficit reduction contributions (£bn)	2020	2021	2022	2023	2024	2025	2026	Sum
2020-26
Based on 2016 Triennial valuation	0.5	1.0	1.0	1.0	1.0	1.0	1.0	6.5
Based on 2019 Triennial valuation	0.5	0.7	0.3	0.3	0.5 (paid	-	-	2.3
in Q419)1
Capital benefit of reduced contributions (pre-tax)	-	(0.3)	(0.7)	(0.7)	(0.5)	(1.0)	(1.0)	(4.2)
Investment in Senior Notes	(0.75)	-	-	0.25	0.25	0.25	-	-
Net capital impact (pre-tax)	(0.25)	0.7	0.3	0.55	0.75	0.25	-	2.3
Net capital impact (bps) - based on Jun-20 RWAs	(8)bps	22bps	9bps	17bps	24bps	8bps

1 £500m paid in Q419 relates to the unwind of the Gilt-backed notes issued as part of Heron |

44 | Barclays Q3 2020 Results | 23 October 2020

Managing evolving future Group minimum leverage requirements

			Minimum leverage requirements and buffers under the UK regime
							• Headroom to minimum leverage requirement of
			Jun-201:		Sep-201:		140bps in Q3, while the RWA based CET1 ratio remains
					our primary regulatory constraint
			UK Spot: 5.2%		UK Spot: 5.2%
					• The Group currently has one leverage requirement, as
		UK Average: 4.7%	UK Average: 5.1%
		measured under the UK's PRA leverage regime. The
Regulatory
Headroom						requirement must be met on a daily basis, and is
minimum
	Headroom		Headroom		reflected in the daily average leverage exposure
4.175%
0.4%		0.0%	3.775%	0.0%	3.775%	• The UK leverage ratio reflects the netting of settlement
	0.525%	40bps	0.525%		0.525%		balance assets and liabilities, which was permitted by
							the PRA in advance of CRR II's timeline since Q2
							reporting

• We expect further tailwinds to be realised when the remaining CRR II changes come into effect in June 2021

	3.25%	3.25%	3.25%		• The CRR II leverage requirement, due to become
								binding from June 2021, will only be at 3%, as the
								G-SIB component will not apply until 2023
		Previous Dec-20		Jun-20		Current
		requirement 2		requirement		requirement
		BoE minimum		G-SII leverage buffer		Countercyclical
		leverage requirement			Leverage Buffer (CCLB)

1 Leverage ratio calculated applying the transitional arrangements of the CRR as amended by CRR II applicable as at the reporting date. This includes IFRS 9 transitional arrangements | 2 Previously expected Dec-20 requirement, following revision of the UK CCyB and Pillar 2A requirements by the PRA in December 2019 |

45 | Barclays Q3 2020 Results | 23 October 2020

Barclays is set up to continue serving clients based in the EU

European Union subsidiary operational with a significant number of clients migrated

• Barclays is well positioned to continue providing services in the European Union with minimal disruption ahead of the end of the Brexit transition period
• Barclays Europe, operating through Barclays Bank Ireland PLC (BBI), is now operational with nine branches across the European Union, and a significant number of relationships with EU based clients have now been migrated
• BBI obtained all regulatory authorisations and licences for its expanded activity in 2018 and is supervised by the Single Supervisory Mechanism of the ECB and the Central Bank of Ireland since 2019
• Barclays Europe fortifies the diversification of the Group's business, operating across Corporate, Investment and Private Banking as well as a credit card and consumer business in Germany1, with strategic investments to grow footprint
• Diversified, well balanced funding sources and strong liquidity ratios. MREL and capital provided from within the Group
• The entity reported a strong financial profile as of H120 with credit ratings in line with its immediate parent BB PLC

European footprint to service key markets

Sweden

•

Banking

Ireland

Sweden

Germany

•

Corporate

•

Barclaycard

•

Private

•

Corporate

Banking

•

Banking

•

Markets

Ireland

Netherlands

•

Markets

Germany

Netherlands

Belgium

•

Corporate

France

Luxembourg

•

Banking

•

Corporate

•

Markets

•

Banking

France

•

Markets

Italy

Luxembourg

•

Corporate

Portugal

Belgium

•

Corporate

Spain

Spain

Italy

Portugal

•

Corporate

•

Corporate

•

Corporate

•

Banking

•

Banking

•

Banking

•

Markets

•

Markets

Barclays Europe Key H120 Ratios and Credit Ratings2

IFRS assets	€92.5bn	Barclays Bank Ireland PLC, as at 22 Oct 2020
CET1 ratio3	13.3%	Fitch	A+ / Negative / F1
LCR	210%	S&P	A / Negative / A-1

1 The activity also incorporates a legacy Italian mortgage portfolio | 2 The ratings are equalised to those of Barclays Bank PLC, the immediate parent of Barclays Bank Ireland PLC | 3 CET1 ratio calculated applying the transitional arrangements of the CRR as amended by CRR II applicable as at the reporting date |

46 | Barclays Q3 2020 Results | 23 October 2020

Financial results tables

Other items of interest - Q320 vs. prior year

Other items of interest - three months ended (£m)	Q320	Q319
L&C
PPI provision	-	(1,400)		Barclays UK
Other L&C across divisions	(76)	(168)		Group
Loss on Tradeweb position	-	(40)		Corporate & Investment Bank

48 | Barclays Q3 2020 Results | 23 October 2020

Q320 Group

Three months ended (£m)	Sep-20	Sep-19 % change
Income	5,204	5,541	(6%)
Impairment	(608)	(461)	(32%)
- Operating costs	(3,391)	(3,293)	(3%)
- Litigation and conduct	(76)	(1,568)	95%
Total operating expenses	(3,467)	(4,861)	29%
Other net income	18	27	(33%)
Profit before tax	1,147	246	>200%
Tax charge	(328)	(269)	(22%)
Profit/(loss) after tax	819	(23)	>200%
Non-controlling interests	(4)	(4)	-
Other equity instrument holders	(204)	(265)	23%
Attributable profit/(loss)	611	(292)	>200%
Performance measures
Basic earnings/(loss) per share	3.5p	(1.7p)
RoTE	5.1%	(2.4%)
Cost: income ratio	67%	88%
LLR	69bps	52bps
Balance sheet (£bn)
RWAs	310.7	313.3

Excluding L&C - three months ended (£m)	Sep-20	Sep-19 % change
Profit before tax	1,223	1,814	(33%)
Attributable profit	668	1,233	(46%)
Performance measures
Basic earnings per share	3.9p	7.2p
RoTE	5.5%	10.2%
Cost: income ratio	65%	59%

49 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays UK

Three months ended (£m)	Sep-20	Sep-19 % change
- Personal Banking	833	1,035	(20%)
- Barclaycard Consumer UK	362	472	(23%)
- Business Banking	355	339	5%
Income	1,550	1,846	(16%)
- Personal Banking	(48)	(36)	(33%)
- Barclaycard Consumer UK	(106)	(49)	(116%)
- Business Banking	(79)	(16)	>(200%)
Impairment charges	(233)	(101)	(131%)
- Operating costs	(1,095)	(952)	(15%)
- Litigation and conduct	(25)	(1,480)	98%
Total operating expenses	(1,120)	(2,432)	146%
Other net expenses	(1)	-	-
Profit/(loss) before tax	196	(687)	129%
Attributable profit/(loss)	113	(907)	112%
Performance measures
RoTE	4.5%	(34.9%)
Average allocated tangible equity	£10.1bn	£10.4bn
Cost: income ratio	72%	132%
LLR	43bps	20bps
NIM	2.51%	3.10%
Balance sheet (£bn)
L&A to customers1	203.9	193.2
Customer deposits1	232.0	203.3
RWAs	76.2	76.8

1 At amortised cost |

Excluding L&C - three months ended (£m)	Sep-20	Sep-19 % change
Profit before tax	221	793	(72%)
Attributable profit	130	550	(76%)
Performance measures
RoTE	5.2%	21.2%
Cost: income ratio	71%	52%

50 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays International

Three months ended (£m)	Sep-20	Sep-19 % change
- CIB	2,905		2,617	11%
- CC&P	876		1,133	(23%)
Income	3,781		3,750	1%
- CIB	(187)		(31)	>(200%)
- CC&P	(183)		(321)	43%
Impairment charges	(370)		(352)	(5%)
- Operating costs	(2,227)		(2,282)	2%
- Litigation and conduct	(28)		-	-
Total operating expenses	(2,255)		(2,282)	1%
Other net income	9		21	(57%)
Profit before tax	1,165		1,137	2%
Attributable profit	782		799	(2%)
Performance measures
RoTE	10.2%		9.9%
Average allocated tangible equity	£30.6bn		£32.2bn
Cost: income ratio	60%		61%
LLR	112bps		99bps
NIM	3.79%		4.10%
Balance sheet (£bn)
RWAs	224.7		223.1

Excluding L&C - three months ended (£m)	Sep-20	Sep-19 % change
Profit before tax	1,193	1,137	5%
Attributable profit	803	801	-
Performance measures
RoTE	10.5%	10.0%
Cost: income ratio	59%	61%

51 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays International: Corporate & Investment Bank

CIB business performance -	Sep-20	Sep-19	% change
three months ended (£m)
- FICC	1,000		816	23%
- Equities	691		494	40%
Markets	1,691		1,310	29%
- Advisory	90		221	(59%)
- Equity capital markets	122		86	42%
- Debt capital markets	398		381	4%
Banking fees	610		688	(11%)
- Corporate lending	232		195	19%
- Transaction banking	372		424	(12%)
Corporate	604		619	(2%)
Total income	2,905		2,617	11%
Impairment charges	(187)		(31)	>(200%)
- Operating costs	(1,716)		(1,712)	-
- Litigation and conduct	(3)		(4)	25%
Total operating expenses	(1,719)		(1,716)	-
Other net income	1		12	(92%)
Profit before tax	1,000		882	13%
Performance measures
RoTE	9.5%		9.1%
Balance sheet (£bn)
RWAs	193.3		184.9

Excluding L&C - three months ended (£m)	Sep-20	Sep-19 % change
Profit before tax	1,003	886	13%
Performance measures
RoTE	9.5%	9.2%

52 | Barclays Q3 2020 Results | 23 October 2020

Q320 Barclays International: Consumer, Cards & Payments

CC&P business performance -	Sep-20	Sep-19	% change
three months ended (£m)
Income	876		1,133	(23%)
Impairment	(183)		(321)	43%
- Operating costs	(511)		(570)	10%
- Litigation and conduct	(25)		4	>(200%)
Total operating expenses	(536)		(566)	5%
Other net income	8		9	(11%)
Profit before tax	165		255	(35%)
Performance measures
RoTE	14.7%		14.2%
Balance sheet (£bn)
RWAs	31.4		38.2

Excluding L&C - three months ended (£m)	Sep-20	Sep-19 % change
Profit before tax	190	251	(24%)
Performance measures
RoTE	16.5%	14.0%

53 | Barclays Q3 2020 Results | 23 October 2020

Q320 Head Office

Three months ended (£m)	Sep-20	Sep-19 % change
Income	(127)		(55)	(131%)
Impairment charges	(5)		(8)	38%
- Operating costs	(69)		(59)	(17%)
- Litigation and conduct	(23)		(88)	74%
Total operating expenses	(92)		(147)	37%
Other net income	10		6	67%
Loss before tax	(214)		(204)	(5%)
Attributable loss	(284)		(184)	(54%)
Performance measures (£bn)
Average allocated tangible equity	7.6		5.8
Balance sheet (£bn)
RWAs	9.8		13.4

Excluding L&C - three months ended (£m)	Sep-20	Sep-19 % change
Loss before tax	(191)	(116)	(65%)
Attributable loss	(265)	(118)	(125%)

54 | Barclays Q3 2020 Results | 23 October 2020

Disclaimer

Important Notice

The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments, or any advice or recommendation with respect to such securities or other financial instruments.

Information relating to:

• regulatory capital, leverage, liquidity and resolution is based on Barclays' interpretation of applicable rules and regulations as currently in force and implemented in the UK, including, but not limited to, CRD IV (as amended by CRD V applicable as at the reporting date) and CRR (as amended by CRR II applicable as at the reporting date) texts and any applicable delegated acts, implementing acts or technical standards. All such regulatory requirements are subject to change;
• MREL is based on Barclays' understanding of the Bank of England's policy statement on "The Bank of England's approach to setting a minimum requirement for own funds and eligible liabilities (MREL)" published in June 2018, updating the Bank of England's November 2016 policy statement, the HM Treasury response to the consultation on the transposition of BRRD II published on 15 October 2020 and the non-binding indicative MREL requirements communicated to Barclays by the Bank of England. Binding future MREL requirements remain subject to change including at the conclusion of the transitional period, as determined by the Bank of England, taking into account a number of factors as described in the policy statement and as a result of the finalisation of international and European MREL/TLAC requirements as these are implemented in the UK;
• future regulatory capital, liquidity, funding and/or MREL, including forward-looking illustrations, are provided for illustrative purposes only and are not forecasts of Barclays' results of operations or capital position or otherwise. Illustrations regarding the capital flight path, end-state capital evolution and expectations and MREL build are based on certain assumptions applicable at the date of publication only which cannot be assured and are subject to change. The Bank of England will review the MREL calibration by the end of 2020, including setting Pillar 2A capital requirements, which may drive a different 1 January 2022 MREL requirement than currently proposed. The Pillar 2A requirement is subject to at least annual review.

Forward-looking Statements

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to the Group. Barclays cautions readers that no forward-looking statement is a guarantee of future performance and that actual results or other financial condition or performance measures could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as 'may', 'will', 'seek', 'continue', 'aim', 'anticipate', 'target', 'projected', 'expect', 'estimate', 'intend', 'plan', 'goal', 'believe', 'achieve' or other words of similar meaning. Forward-looking statements can be made in writing but also may be made verbally by members of the management of the Group (including, without limitation, during management presentations to financial analysts) in connection with this document. Examples of forward- looking statements include, among others, statements or guidance regarding or relating to the Group's future financial position, income growth, assets, impairment charges, provisions, business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend payout ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets, estimates of capital expenditures, plans and objectives for future operations, projected employee numbers, IFRS impacts and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. The forward-looking statements speak only as at the date on which they are made and such statements may be affected by changes in legislation, the development of standards and interpretations under IFRS, including evolving practices with regard to the interpretation and application of accounting and regulatory standards, the outcome of current and future legal proceedings and regulatory investigations, future levels of conduct provisions, the policies and actions of governmental and regulatory authorities, geopolitical risks and the impact of competition. In addition, factors including (but not limited to) the following may have an effect: capital, leverage and other regulatory rules applicable to past, current and future periods; UK, US, Eurozone and global macroeconomic and business conditions; the effects of any volatility in credit markets; market related risks such as changes in interest rates and foreign exchange rates; effects of changes in valuation of credit market exposures; changes in valuation of issued securities; volatility in capital markets; changes in credit ratings of any entity within the Group or any securities issued by such entities; direct and indirect impacts of the coronavirus (COVID-19) pandemic; instability as a result of the exit by the UK from the European Union (EU) (including the outcome of negotiations concerning the UK's future trading and security relationship with the EU) and the disruption that may subsequently result in the UK and globally; and the success of future acquisitions, disposals and other strategic transactions. A number of these influences and factors are beyond the Group's control. As a result, the Group's actual financial position, future results, dividend payments, capital, leverage or other regulatory ratios or other financial and non-financial metrics or performance measures may differ materially from the statements or guidance set forth in the Group's forward-looking statements. Additional risks and factors which may impact the Group's future financial condition and performance are identified in our filings with the SEC (including, without limitation, our Annual Report on Form 20-F for the fiscal year ended 31 December 2019 and our 2020 Interim Results Announcement for the six months ended 30 June 2020 filed on Form 6-K), which are available on the SEC's website at www.sec.gov.

Subject to our obligations under the applicable laws and regulations of any relevant jurisdiction, (including, without limitation, the UK and the US), in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-IFRS Performance Measures

Barclays management believes that the non-IFRS performance measures included in this document provide valuable information to the readers of the financial statements as they enable the reader to identify a more consistent basis for comparing the businesses' performance between financial periods and provide more detail concerning the elements of performance which the managers of these businesses are most directly able to influence or are relevant for an assessment of the Group. They also reflect an important aspect of the way in which operating targets are defined and performance is monitored by Barclays management. However, any non-IFRS performance measures in this document are not a substitute for IFRS measures and readers should consider the IFRS measures as well.

55 | Barclays Q3 2020 Results | 23 October 2020