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Barclays Full Year Results

Barclays Full Year 2020 Results

We have announced our Full Year Results for 2020, alongside our 2020 Annual Report.

Financial performance highlights

Group Chief Executive Officer’s review

Jes Staley, Barclays CEO

Throughout the pandemic we have focussed on preserving the financial and operational integrity of the firm so that we can maximise our support for clients and customers, for colleagues, and for the communities in which we live and work…2020 demonstrated the value of our diversified banking model, delivering resilient Group results even in a difficult macroeconomic period, driven by the performance of our Corporate and Investment Bank.

Jes Staley

Group CEO

COVID-19 support highlights

payment holidays
Interest and fee waivers
£27bn to companies through UK govt lending schemes
Helped raise £1.5trillion in the global capital markets
£100million COVID-19 community aid package
COVID-19 support graphic

Full Year 2020 updates from across the Group

Barclays results

Barclays Group

Despite the pandemic, Barclays remained profitable every quarter during 2020 and delivered a full year Group profit before tax of £3.1bn (2019: £4.4bn, including a Payment Protection Insurance (PPI) provision of £1.4bn), attributable profit of £1.5bn (2019: £2.5bn), a return on tangible equity (RoTE) of 3.2% (2019: 5.3%) and earnings per share (EPS) of 8.8p (2019: 14.3p). Our CET1 capital ratio increased 50bps in the quarter, and 130bps in the year to 15.1%, significantly ahead of our minimum requirement. Overall, our diversified business model delivered a resilient operating performance, allowing capital distributions to shareholders equivalent to 5.0p per share.

Barclays UK banking

Barclays UK

This part of the business continued to support customers throughout the challenging operating environment, increasing lending by £11.7bn predominantly through Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS) loans to small and medium-sized enterprises (SMEs), as well as delivering strong mortgage growth. Customer deposit growth of £35bn added to a strong liquidity position reflected in the full year loan: deposit ratio of 89%, 7% lower than prior year. Full year RoTE of 3.4%, excluding litigation and conduct, was materially below historical performance, reflecting the impact of the COVID-19 pandemic as well as ongoing investment spend, including structural cost actions to continue to transform the business over time. 

Remote home working

Barclays International

Barclays International continued to support its customers and clients through the COVID-19 pandemic by providing or facilitating lending, through the range of support programmes which have been introduced, as well as enabling the raising of debt and equity financing in the capital markets. Support actions, including payment holidays, were introduced to help customers and clients. Despite the challenging operating environment, Barclays International delivered a RoTE, excluding litigation and conduct, of 7.2%, reflecting the benefits of a diversified business model. Within that, Corporate and Investment Bank (CIB) posted income of £12.5bn, up 22% due to strong Markets income reflecting market share gains in a buoyant trading environment, as well as strong Banking income, resulting in the best ever year on a comparable basis for both businesses.


Jes Staley - Group Chief Executive Officer Review

In a year in which the COVID-19 pandemic affected people across the globe, 2020 demonstrated our strengths, our values, and our resilience.

Throughout the pandemic we have focussed on preserving the financial and operational integrity of the firm so that we can maximise our support for clients and customers, for colleagues, and for the communities in which we live and work.

In the past year, we have helped companies to raise around £1.5tn through the global capital markets1, extended around £27bn to businesses through UK government lending schemes, provided over 680k payment holidays to customers2, waived around £100m of interest and fees, and committed £100m to charities through our COVID-19 Community Aid Package.

2020 demonstrated the value of our diversified banking model, delivering resilient Group results even in a difficult macroeconomic period, driven by the performance of our CIB.

Total income increased to £21.8bn. Within Barclays International, CIB income was up 22%, while CC&P income was down 22%. In Barclays UK, income was down 14%.

Pre-provision profits3 were broadly stable at £8.1bn. However, impairment charges, maintaining our cautious view of the impact of the pandemic, totalled £4.8bn. The fourth quarter impairment charge of c.£500m was however down 19% from the previous quarter.

Group profit before tax was £3.1bn for the year, and we remained profitable in every quarter, including generating profit before tax of £646m in the fourth quarter.

CIB income was £12.5bn, with both Markets and Banking achieving their best ever income performance4, up 45% and 8% respectively. Corporate income was down 13%, including the impact of lower interest rates. Overall, profit before tax in the CIB increased 35% to £4bn.

Our CC&P business made a loss before tax of £388m for the full year due to impairment charges, despite returning to profit in the third and fourth quarters.

Barclays UK profit before tax, excluding litigation and conduct, decreased 78% to £578m, including £278m in the fourth quarter, reflecting the impact of the COVID-19 pandemic driving higher impairment.

Group costs, excluding litigation and conduct, rose 1% to £13.7bn which included structural cost actions, leading to a cost to income ratio of 63%.

Group RoTE was 3.2%, including 9.5% for the CIB, (7.5%) for CC&P, and 3.2% for Barclays UK. Earnings per share were 8.8p.

Our CET1 capital ratio increased 50bps in the quarter, and 130bps in the year to 15.1%, significantly ahead of our minimum requirement.

Given the strength of our business, we have decided the time is right to resume capital distributions. We have today announced a total payout equivalent to 5p per share, comprising a 1p 2020 full year dividend and the intention to initiate a share buyback of up to £700m. We expect to comment further on capital distributions when appropriate.

Barclays remains well capitalised, well provisioned for impairments, highly liquid, with a strong balance sheet, and competitive market positions across the Group. We expect that our resilient and diversified business model will deliver a meaningful improvement in returns in 2021.

  1. Across Equity and Debt Capital Markets in Q220-Q420.
  2. Total payment holidays granted as at 31 December 2020, business lending and commercial paper issuance data as at 12 and 15 February 2021 respectively.
  3. Excluding litigation and conduct.
  4. Period covering Q114 – Q420. Pre 2014 financials were not restated following re-segmentation in Q116.