Barclays
Annual Report 2021

Plain-text annual report

Barclays PLC FY 2021 Results 23 February 2022 C.S. Venkatakrishnan Barclays Group Chief Executive FY21: Record profit before tax and increased capital returns Diversification delivering Consumer recovery Record CIB profits1 Cost control Net impairment release Strong capital position • Record PBT of £8.4bn and 13.4% RoTE • Well positioned for rising rates, strong UK mortgage and deposit volumes, and improving spend trends in the UK and US • £5.8bn CIB PBT and 14.9% RoTE • FY21 base costs2 flat YoY at £12.0bn – cost discipline while investing for growth • £0.7bn FY impairment release – robust unsecured lending coverage ratios • 15.1% CET1 ratio – enabling attractive return of capital Increased capital return • 2021 total dividend of 6.0p per share • 2021 announced total share buybacks of up to £1.5bn Income £21.9bn Cost: income ratio 66% PBT £8.4bn RoTE 13.4% EPS 37.5p CET1 ratio 15.1% TNAV per share 292p Total capital return 15.0p3 equivalent per share (£2.5bn) 1 On a comparable basis, period covering 2014 - 2021. Pre 2014 financials not restated following re-segmentation in 2016 | 2 Costs excluding structural cost actions and performance costs | 3 6.0p total dividend (4.0p full year dividend). Announced up to £1.0bn buyback with FY21 results, bringing total buybacks in respect of 2021to £1.5bn | 3 | Barclays FY 2021 Results | 23 February 2022 Barclays’ diversified strategy is delivering Group RoTE >10% in 2021 Costs continue to be tightly managed 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% Statutory RoTE Statutory EPS (p) RoTE target: 75 >10% 65 Total costs (excl. L&C ) (£bn) 1 1 L&C (£bn) CIR 10.4 3.6% 2016 (3.6%) (10.3) 2017 (0.7%) (1.9) 2015 9.4 3.6% 14.3 5.3% 8.8 3.2% 37.5 13.4% 55 45 35 25 15 5 -5 -15 85% 80% 75% 70% 65% 60% 84% 18.5 4.4 14.1 16.3 1.4 76% 15.0 15.5 1.2 73% 14.2 16.2 2.2 77% 14.0 15.4 1.8 71% 13.6 2018 2019 2020 2021 2015 2016 2017 2018 2019 CIR target: <60% 20.0 15.0 10.0 5.0 0.0 14.4 0.2 14.3 66% 2021 13.9 0.2 13.7 64% 2020 Prudently managed capital resources Increased capital distributions to shareholders CET1 Ratio CET1 target: 13 – 14% DPS (p) Share buybacks (p per share) 11.4% 12.4% 13.3% 13.2% 13.8% 15.1% 15.1% 6.5 6.5 3.0 3.0 3.0 3.0 6.5 6.5 3.0 3.0 5.0 4.0 1.0 15.0 9.0 6.0 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021 Barclays has made significant progress – our objective is to deliver consistently against our financial targets whilst growing selectively 1 Litigation and Conduct | Note: Charts may not sum due to rounding | 4 | Barclays FY 2021 Results | 23 February 2022 The real economy backdrop is supportive of Barclays’ corporate and consumer businesses Interest rates (%) Change in monthly card spending vs. 20192 (%) GBP 5 Year swap rate1 UK base rate UK debit and credit cards US credit cards 1.75 1.25 0.75 0.25 -0.25 8 6 4 2 0 Monthly YoY inflation4 (%) UK US 18th Feb: 1.55 18th Feb: 0.50 Jan-22: 7.5 Jan-22: 5.5 15 5 -5 -15 15 10 5 0 Unemployment rate5 (%) UK US Jan-22: 7.43 Jan-22: (0.2)3 Jan-22: 4.0 Dec-21: 4.1 1 UK Pound Sterling SONIA OIS Zero 5 Year Point (Refinitiv: GBPOIS5YZ=R) | 2 UK debit and credit cards data based on Barclays debit and credit cards transactions, as per the monthly Barclays UK Consumer Spending Report | 3 Compared against Jan-20 | 4 UK CPI YY (Refinitiv: GBHICY=ECI) and US CPI YY NSA (Refinitiv: USCPNY=ECI) | 5 UK unemployment rate (Refinitiv: GBILOU=ECI) and US unemployment rate (Refinitiv: USUNR=ECI) | 5 | Barclays FY 2021 Results | 23 February 2022 How Barclays will continue to deliver value Our diversification, built to deliver double-digit returns Strategic priorities to sustain and grow Resilient through economic cycles BUK A large scale retail and business bank in the UK CC&P A broad international consumer lending, cards and payments franchise Deliver next-generation, digitised consumer financial services Deliver sustainable growth in the CIB Delivering value for our stakeholders CIB A top tier global corporate and investment bank Capture opportunities as we transition to a low- carbon economy A diversified combination of strong businesses, together with clear strategic priorities, positions us to deliver value to all of our stakeholders 6 | Barclays FY 2021 Results | 23 February 2022 Our strategic priorities to grow are underpinned by structural market and societal trends Deliver next-generation, digitised consumer financial services Deliver sustainable growth in the CIB Capture opportunities as we transition to a low-carbon economy The digital revolution continues Public and private capital markets continue to grow The demand for green products is increasing significantly Branch visits (m) Public Mobile banking active customers (m) 1 Bonds outstanding ($tn) 7.3 84.9 8.4 72.9 90 80 70 60 50 40 30 20 10 0 9.7 9.2 10 +33% vs. 2018 Equity market 2 capitalisation ($tn) 8 6 4 2 0 -66% vs. 2018 193 +57% 72 +36% 122 +74% 123 53 70 36.2 29.0 Private3 Total private capital markets AUM ($tn) 9.84 +63% 6.0 Amount issued from green loans globally (£bn) 5 Amount issued from green bonds globally (£bn) 5 501 90 +291% vs. 2018 +592% vs. 2018 411 +257% vs. 2018 500 400 300 200 100 0 237 32 266 54 205 212 128 13 115 2018 2019 2020 2021 2018 2021 2018 2021 2018 2019 2020 2021 1 Bonds represent debt issuance outstanding for Investment Grade (Source: Bloomberg Barclays Global Aggregate Index LEGATRUU) and high yield (Source: Bloomberg Barclays Global High Yield Index LG30TRUU) | 2 Source: Bloomberg WCAUWRLD Index representing the market capitalisation from all shares outstanding. Data does not include ETFs and ADRs | 3 Source: Preqin “Future of Alternatives 2025” data excl. Hedge Funds | 4 Based on data as of H121 | 5 Source: Refinitiv green bond guide | Note: Charts may not sum due to rounding | 7 | Barclays FY 2021 Results | 23 February 2022 Deliver next-generation, digitised consumer financial services Building better products and services, leveraging our payments interconnections and improving our efficiency UK retail banking Payments US and UK consumer lending Investing in digital capabilities Realising value from our Payments platform Expanding consumer lending in the US and UK through Corporate partnerships Accelerating customer digital access and adoption • Invested >£500m over recent years, positioning business to enhance product offering Building more cost-effective infrastructure Further diversification of partner portfolio into retail and broadening product offering UK SME growth through digital capabilities and partnership channels An integrated payments solution for corporates in the UK and Europe Simplifying product proposition to better serve customer needs Monetise investments in e-commerce gateway capabilities Point of Sale finance ventures • Amazon (UK and Germany) • Apple (UK) • Amount (US) As technology transforms consumer financial services, we will continue to adapt our product offering 8 | Barclays FY 2021 Results | 23 February 2022 Deliver sustainable growth in the CIB As the capital markets grow, we aim to maintain our market position as a top six global investment bank while investing in new capabilities and digital platforms Investment Banking Global Markets Corporate Banking Investing for growth Growing financing income streams Broadening product capabilities Strong foundation Global IB Fee Share1 FY21 Rank #6 (↑ 1 vs. FY18) Strong foundation Global Markets2 FY21 Rank #6 (↑ 1 vs. FY18) Growing ECM Global ECM Fee Share1 +70 bps FY18-21 Increasing client share Expanding coverage Global Technology Fee Share1 +50 bps FY18-21 Diversifying Investment Banking income £2.5bn FY18 1.5 0.7 0.3 0.9 1.9 £3.7bn FY21 0.8 Advisory ECM DCM Growing stable income Diversifying Global Markets income Global institutional client wallet share3 Equity Prime client balances4 +70 bps FY18-H121 c.50% growth since FY18 Leveraging European offering and continuing build out of US capabilities Number of clients (Europe) +c.600 in 2021 +c.20% YoY Deepening client relationships and driving returns Income return on RWAs6 5.8% in 2021 +c.90bps YoY Financing income5 c.40% growth since FY18 Growing non-capital intensive, fee based income Transaction banking fee income7 c.£600m +7% YoY 1 Sourced from Dealogic for the period covering 01-Jan-21 to 31-Dec-21 | 2 Sourced from Coalition Greenwich, Preliminary FY21 Competitor Analysis. Analysis is based on Barclays internal business structure and internal revenues. Rank result is against the Coalition Index Banks | 3 Sourced from Coalition Greenwich, FY18 & H121 Institutional Client Analytics. Based on Barclays share of the leading Global Markets Institutional wallets | 4 Average financing balances | 5 Includes financing income across both Equities and FICC | 6 Corporate Bank income/Average credit risk RWAs | 7 Fee and commission income only | Note: Charts may not sum due to rounding | 9 | Barclays FY 2021 Results | 23 February 2022 Capture opportunities as we transition to a low-carbon economy We want to be a trusted partner for our customers and clients as they transition Supporting clients with the transition Developing new green and sustainable products Investing in sustainable innovation Scaling-up of low-carbon technologies, infrastructure and capacity Green home mortgages, bonds, loans and investment funds Sustainability-focused start-ups • Providing advice and finance to enable clients to decarbonise Over £1bn Green Home Mortgages completed since launch 9 investments made under our Sustainable Impact Capital Programme including 2 in Q421 Facilitated c.£62bnΔ Green Finance since 2018 Joint lead on 7/8 inaugural syndicated green bonds issued by European sovereigns since 2017 Barclays’ Green Structured Notes programme launched Advised/served as underwriter on >50 environmental and social M&A and equity transactions worth >$25bn in 2021 Research team of subject matter experts delivering ESG thought leadership Δ 2021 data reproduced from the Barclays PLC Annual Report subject to independent Limited Assurance under ISAE(UK)3000 and ISAE3410. Refer to the ESG Resource Hub for details: home.barclays/sustainability/esg-resource-hub/ | 10 | Barclays FY 2021 Results | 23 February 2022 Our Purpose underpins the strong progress we delivered against our ESG strategy in 2021 Our Purpose: The reason Barclays exists; the societal need we fulfil We deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long term Environment • Achieved emissions reductions of -22%1 / -8%1 in Energy / Power portfolios • Founding member of NZBA2 and member of SMI FSTF3 • Built expertise including appointment of new Group Head of Sustainability • Joined the Get Nature Positive Commitment and TNFD4 Forum • Addressing nature and biodiversity considerations in our financing and operations • New ambitions to increase black and minority ethnic representation in our workforce • Comprehensive support for colleagues through the pandemic Social • Extended our Female Innovators Lab to the UK and Europe • Added socio-economic inclusion as our sixth D&I agenda • Launched our updated Purpose, Values and Mindset • Announced ‘Say on Climate’ shareholder vote to be held at the 2022 AGM Governance 1 From a baseline of 12 months to 31 December 2020 measured using BlueTrackTM: Energy absolute emissions – 75.0 MtCO2 / Power emissions intensity – 320 KgCO2/MWh | 2 Net-Zero Banking Alliance | 3 Sustainable Markets Initiative’s Financial Services Task Force | 4 Taskforce for Nature-related Financial Disclosures | 11 | Barclays FY 2021 Results | 23 February 2022 Prudently allocating capital while delivering attractive return of capital to shareholders Attractive return of capital to shareholders - Total payout of 15p per share in respect of 20211 Demand-led business growth and capital light, high return opportunities 13-14% CET1 ratio target range, absorbing regulatory headwinds Strong organic capital generation from earnings Target RoTE of >10% translates to c.150bps of annual capital ratio accretion 1 6.0p total dividend (4.0p full year dividend). Announced up to £1.0bn buyback with FY21 results, bringing total buybacks in respect of 2021to £1.5bn | 12 | Barclays FY 2021 Results | 23 February 2022 Record FY21 profitability, increased capital distributions FY21 metrics Returns Group RoTE 13.4% Cost efficiency Cost: income ratio 66% Capital adequacy CET1 ratio 15.1% Capital distributions Total 2021 payout equivalent of 15.0p per share1 (£2.5bn) Group targets over the medium term Returns Cost efficiency Group RoTE >10% Cost: income ratio <60% Capital adequacy Capital distributions CET1 ratio 13-14% Progressive ordinary dividend, supplemented as appropriate, including with share buybacks 1 6.0p total dividend (4.0p full year dividend). Announced up to £1.0bn buyback with FY21 results, bringing total buybacks in respect of 2021to £1.5bn | 13 | Barclays FY 2021 Results | 23 February 2022 Tushar Morzaria Barclays Group Finance Director FY21 Group highlights Income £21.9bn FY20: £21.8bn Costs £14.4bn FY20: £13.9bn Cost: income ratio 66% FY20: 64% Impairment £(0.7)bn release FY20: £4.8bn charge PBT £8.4bn FY20: £3.1bn EPS 37.5p FY20: 8.8p RoTE 13.4% FY20: 3.2% CET1 ratio 15.1% Dec-20: 15.1% TNAV per share 292p Dec-20: 269p Liquidity Coverage Ratio 168% Dec-20: 162% • Income of £21.9bn up 1%, despite a 8% depreciation of average USD against GBP − BUK income increased 3%, CC&P income decreased 3%, and CIB income decreased 1% • Costs increased 4% to £14.4bn, due to higher structural cost actions and performance costs − Base costs1 were flat at £12.0bn, incorporating investment for business growth, favourable FX movements, efficiency savings and lower bank levy • Net credit impairment release of £0.7bn − Stage 1 and 2 impairment release of £1.3bn2, primarily due to an improved macroeconomic outlook − Stage 3 charge was £0.7bn2, reflecting reduced unsecured lending balances and benign credit environment • PBT of £8.4bn, EPS of 37.5p and RoTE of 13.4%, with all operating divisions generating double digit returns • Total 2021 payout equivalent of 15.0p per share, including 6.0p total dividend and total buybacks of up to £1.5bn announced in respect of 2021 • CET1 ratio of 15.1%, flat vs. Dec-20 including 72bps of capital distributions through dividends and buybacks • TNAV per share increased 23p from Dec-20 to 292p, reflecting 37.5p of EPS, partially offset by net adverse reserve movements and other items Profit before tax (£m) 237 5,491 8,414 174 553 3,065 FY20 Income Costs Impairment Other net income FY21 1 Costs excluding structural cost actions and performance costs | 2 Numbers do not sum to total due to rounding | 15 | Barclays FY 2021 Results | 23 February 2022 Income: ongoing benefits from business diversification enabling increased revenue YoY Group income +1% YoY despite an 8% USD/GBP depreciation (£m) 21,766 6,347 3,445 21,940 6,536 3,331 12,476 12,334 • Strong mortgage volumes and margins Barclays UK: +3% YoY • Non-recurrence of prior year COVID-19 customer support actions • Partially offset by lower unsecured lending balances BI: Consumer, Cards & Payments -3% YoY • Lower average US cards balances and higher initial costs on new account acquisition • Partially offset by higher Unified Payments and Private Bank income BI: Corporate & Investment Bank -1% YoY • Global Markets -16% – Equities +20% and FICC -33% • Investment Banking fees +34% – ECM +72%, Advisory +64% and DCM +13% • Corporate +6% – Transaction Banking +8% and Corporate Lending flat (502) FY20 (261) FY21 Head Office: +48% YoY • Hedge accounting, legacy funding costs and other treasury items, partially offset by mark-to-market gains on legacy investments and Absa dividends 16 | Barclays FY 2021 Results | 23 February 2022 Mortgage growth continues, well positioned for rising rates and optimistic about recovery in unsecured lending Mortgages Group NII interest rate sensitivity Group NII interest rate sensitivity BUK: Mortgage balances (£bn) 143.3 148.3 155.2 157.4 158.1 Dec-19 Dec-20 Jun-21 Sep-21 Dec-21 • Strong mortgage flow from new applications, with net balances up £0.7bn QoQ and £9.9bn1 YoY in Q421 • Q421 margins have reduced from the levels seen in Q321 YTD GBP 5 Year swap rate2 (%) 1.5 1.0 0.5 0.0 BUK: UK cards End Net Receivables (£bn) CC&P: US cards End Net Receivables ($bn) 2016 -0.5 2017 Zero Yield Close 2018 2019 2020 2021 2022 5 Year Moving Average Credit cards 15.9 11.2 9.6 9.6 9.5 Dec-19 Dec-20 Jun-21 Sep-21 Dec-21 Illustrative Group income impact from a 25bps upward parallel shift in interest rate curves3 (£m) Year 1 Year 2 Year 3 c.275 c.375 c.525 • Barclays is well positioned for a rising rate environment given significant 27.1 21.0 20.1 21.1 22.2 deposit balances Dec-19 Dec-20 Jun-21 Sep-21 Dec-21 • US cards growth in 2021 includes $0.6bn AARP portfolio acquisition and organic balance build • The scenario above assumes a 25bps parallel shift in interest rates, with the additional benefit in years 2 and 3, primarily reflecting the structural hedge being reinvested in higher yielding swaps • Around two thirds of the Group income benefit from the illustrative 25bps • Recovery in spending expected to drive growth in unsecured lending upward parallel shift is in BUK, with the remaining in BI balances • Expect income headwinds from higher acquisition costs as new accounts and balances grow, particularly in the US • Given the move in the yield curve and increase in hedge notional, the structural hedge contribution in FY22 is currently expected to be higher than in FY21 1 Numbers do not tie to chart due to rounding | 2 UK Pound Sterling SONIA OIS Zero 5 Year Point (Refinitiv: GBPOIS5YZ=R) | 3 See slide 40 for more details | 17 | Barclays FY 2021 Results | 23 February 2022 Costs: FY21 increase driven by higher structural cost actions and performance costs, with flat base costs (£m) FY21 total costs +4% YoY (£m) 13,886 299 4,302 2,120 6,693 14,439 170 4,394 2,366 6,835 472 FY20 Head Office CIB CC&P BUK 674 FY21 Bank Levy • FY21 total costs +4% YoY reflecting favourable FX movements, efficiency savings and lower bank levy, more than offset by higher structural cost actions and performance costs, and investment in business growth FY21 base costs flat YoY (£m) 32 241 280 13,886 FY21 base costs flat YoY at £12.0bn 14,439 FY20 total costs Base costs 1 Performance costs Structural cost actions FY21 total costs • • FY21 base costs were flat YoY at £12,046m (FY20: £12,014m), in line with guidance FY21 performance costs increased by £241m to £1,745m (FY20: £1,504m) reflecting improved returns • Q421 structural cost actions of £256m, taking FY21 structural cost actions to £648m (FY20: £368m) 1 Costs excluding structural cost actions and performance costs | 18 | Barclays FY 2021 Results | 23 February 2022 FY21 structural cost actions predominantly related to BUK transformation spend and real estate charge Structural cost actions (£m) FY21 structural cost actions increased to £648m 648 266 2881 94 FY21 Real estate charge • Charge taken in Head Office in Q221 to vacate a London office building by the end of 2022 − Expected to result in annual cost savings of c.£50m from 2023 onwards • BUK People and Operations (FY21: £181m2; Q421: £121m) − Right-sizing headcount in branches and operations − Automate operations and run a cost-efficient location strategy for employees • BUK Property (FY21: £106m2; Q421: £75m) − Primarily branch reductions − ‘Digital first’ service model using a streamlined branch footprint • Average payback of c.1-2 years on People and Operations, and c.2-3 years on Property, with savings expected to be delivered from 2023 • Efficiency savings expected to create capacity for further investments in digital transformation BUK transformation spend Other 368 150 FY19 FY20 Expect structural costs actions in FY22 to be lower than FY21 1 Includes all BUK structural cost actions, primarily related to transformation spend | 2 Numbers do not tie to chart due to rounding | 19 | Barclays FY 2021 Results | 23 February 2022 FY22 base costs expected to be modestly higher than £12.0bn due to inflationary pressures and planned investment spend Structural cost actions Performance costs 14,439 648 1,745 FY21 to FY22 costs outlook (£m) Key drivers of base costs2 Base costs1 12,046 • Demand-led growth • Strategic investments • Technology productivity • Inflationary pressures • Technology and digital • Process optimisation • Cyber, fraud and regulatory • Smart procurement controls • Amortisation of capitalised costs • Real estate strategy Modestly higher than £12.0bn3 FY21 Business related growth Investment spend Efficiency savings FY22 • Base costs reflect volume-related growth, inflationary pressures and investments, partially offset by efficiencies − The ongoing economic recovery is presenting attractive opportunities, leading to continued volume related growth and investment spend in FY22 • FY22 structural cost actions are expected to be lower than FY21 − Continuing to drive efficiencies, including continued transformation of the BUK cost base • Performance costs will be dependent on business performance and Group returns 1 Costs excluding structural cost actions and performance costs | 2 Bars not to scale | 3 Group cost outlook is based on an average rate of 1.35 (USD/GBP) in 2022 and subject to foreign currency movements | 20 | Barclays FY 2021 Results | 23 February 2022 Impairment: FY21 net release of £0.7bn, reflecting lower unsecured lending balances and a net release in the CIB Impairment charge / (release) (£m) Drivers of impairment charge / (release) 4,838 1,467 1,721 1,559 91 FY20 185 (473) (365) (653) FY21 Head Office Corporate & Investment Bank Consumer, Cards & Payments Barclays UK 21 | Barclays FY 2021 Results | 23 February 2022 Impairment release of £365m driven by an improved macroeconomic outlook and lower unsecured lending balances reflecting reduced borrowing, customer repayments and lower delinquencies BUK − UK cards 30 and 90 day arrears rates were 1.0% and 0.2% respectively (Q420: 1.7% and 0.8%) BI: CC&P Impairment charge of £185m, down 89% YoY driven by lower US cards delinquencies and customer repayments − US cards 30 and 90 day arrears rates were 1.6% and 0.8% respectively (Q420: 2.5% and 1.4%) BI: CIB Impairment release of £473m including an improved macroeconomic outlook and a net wholesale release Components of impairment charge / (release) (£m) 4,838 2,323 2,515 FY20 Stage 1 and 2 impairment Stage 3 impairment 693 (1,346) (653) FY21 Dec-21 coverage ratios remain strong Credit cards, unsecured loans and other retail lending Wholesale loans Gross exposure (£bn) 60.2 3.4 10.8 46.0 46.5 3.2 10.3 45.8 2.3 5.6 33.0 37.8 Impairment allowance (£bn) Coverage ratio Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio 5.7 2.3 2.8 0.7 4.9 2.3 2.0 0.5 4.0 1.5 1.7 0.8 8.1% 12.3% 8.8% 68.5% 71.0% 64.5% 18.7% 26.8% 30.1% 1.2% 2.1% 2.2% 151.7 2.8 15.9 144.3 3.6 21.4 130.3 2.4 10.4 117.5 119.3 133.0 0.8% 1.5% 0.8% 23.2% 29.7% 22.3% 2.9% 3.3% 1.6% 0.1% 0.3% 0.3% 2.1 1.1 1.2 0.7 0.3 0.6 0.3 0.4 1.0 0.5 0.3 0.1 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Home loans Total loans Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio 0.3% 0.3% 0.3% 0.5 16.1% 18.8% 18.7% 345.4 7.9 38.2 351.0 9.0 51.0 367.2 7.2 41.1 0.4% 0.4% 0.3% 299.3 291.0 318.9 0.4 0.5 0.4 0.4 0.3 8.3 3.7 3.6 1.0 6.3 3.2 2.4 0.7 5.7 2.5 2.0 1.2 1.8% 2.4% 1.6% 40.7% 41.5% 34.8% 6.2% 7.0% 4.9% 0.2% 0.4% 0.4% 0.1 0.0 0.1 0.0 Dec-19 Dec-20 Dec-21 0.1 0.0 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 154.9 2.2 17.0 160.2 2.2 19.3 169.7 2.1 19.5 135.7 138.6 148.1 Dec-19 Dec-20 Dec-21 Stage 1 Stage 2 Stage 3 22 | Barclays FY 2021 Results | 23 February 2022 Q421 Group highlights • Income of £5.2bn, up 4% driven by improved income from BUK and CCP, with stable CIB income • Costs down 3%, reflecting efficiency savings, reduced performance costs and lower bank levy, partially offset by higher BUK structural cost actions and investment in business growth • Net credit impairment release of £31m, reflecting an improved macroeconomic outlook, lower unsecured lending balances and a net wholesale release • PBT of £1.5bn compared to £0.6bn in Q420 • Attributable profit of £1.1bn generated EPS of 6.6p and RoTE of 9.3%, with all operating divisions generating double digit returns • CET1 ratio of 15.1%, down c.30bps from Sep-21, reflecting higher RWAs and the dividend accrual, partially offset by earnings • TNAV per share increased 5p to 292p QoQ, primarily reflecting 6.6p of EPS, partially offset by adverse reserve movements Profit before tax (£m) 10 523 219 96 1,474 646 Q420 Income Costs Impairment Other net income Q421 Income £5.2bn Q420: £4.9bn Costs £3.7bn Q420: £3.8bn Cost: income ratio 72% Q420: 77% Impairment £(31)m release Q420: £0.5bn charge PBT £1.5bn Q420: £0.6bn EPS 6.6p Q420: 1.3p RoTE 9.3% Q420: 1.8% CET1 ratio 15.1% Sep-21: 15.4% TNAV per share 292p Sep-21: 287p Liquidity Coverage Ratio 168% Sep-21: 161% 23 | Barclays FY 2021 Results | 23 February 2022 Q421 Barclays UK RoTE of 16.8% including structural cost actions, with FY21 NIM of 2.52% in line with guidance Income £1.7bn Q420: £1.6bn Costs £1.2bn Q420: £1.2bn Cost: income ratio 73% Q420: 73% Impairment £(0.1)bn release Q420: £0.2bn charge • Income increased 4% primarily driven by improved mortgage margins and increased balances, partially offset by lower unsecured lending balances − Increase in non-interest income QoQ reflects higher debt sales • NIM flat QoQ at 2.49%, FY21 NIM of 2.52% – FY22 NIM expected to be between 2.60% – 2.70%, reflecting the benefit of higher rates2, partially offset by the mix of secured vs. unsecured lending growth Loan loss rate n/a Q420: 31bps PBT £0.5bn Q420: £0.3bn • Costs increased 5% driven by structural cost actions of £196m to deliver efficiency savings over time Q420 1,626 309 Q121 1,576 295 Q221 1,623 318 Q321 1,638 335 Q421 1,699 386 1,317 1,281 1,305 1,303 1,313 NII Non-interest income 2.56% 2.54% 2.55% 2.49% 2.49% Total income (£m) Net interest margin (NIM) Costs (£m) 1,180 1,039 1,097 1,051 1,243 RoTE 16.8% Q420: 6.5% Average equity1 £10.0bn Q420: £9.8bn Loan: deposit ratio 85% Sep-21: 86% RWAs £72.3bn Sep-21: £73.2bn • Impairment release of £59m due to an improved macroeconomic outlook, and lower unsecured lending balances and delinquencies Impairment (£m) 170 77 137 (520) (59) • Loans3 remained broadly stable QoQ at £208.8bn • Customer deposits4 increased £3.8bn QoQ to £260.6bn primarily driven by growth in Personal Banking, further strengthening the liquidity position and contributing to a loan: deposit ratio of 85% Loans3 (£bn) Customer deposits4 (£bn) 205 206 208 209 209 241 248 256 257 261 1 Average allocated tangible equity | 2 Assumes the UK base rate increases to 1% by the end of 2022 | 3 Loans and advances at amortised cost | 4 Customer deposits at amortised cost | 24 | Barclays FY 2021 Results | 23 February 2022 Q421 Barclays International RoTE of 10.4% driven by resilient income and operating performance • Income increased 1% − Balanced income profile across businesses and geographies • 2% depreciation of average USD against GBP was a headwind to income and profits, and a tailwind to impairment and costs • Costs decreased 2% to £2.3bn resulting in an improved cost: income ratio of 66% • Impairment charge of £23m reflecting a net release in CIB and a low CC&P charge driven by low delinquencies and high repayment rates in US cards • RWAs increased £8.2bn QoQ to £230.9bn driven by higher modelled market risk RWAs 25% 30% Business diversity of Q421 income (£m) 27% 18% 7% 15% Geographic diversity of FY21 income2 (%) 48% 30% Global Markets Investment Banking fees Corporate CC&P Americas UK Europe Other Income £3.5bn Q420: £3.5bn Costs £2.3bn Q420: £2.4bn Cost: income ratio 66% Q420: 68% Impairment £23m Q420: £291m Loan loss rate 7bps Q420: 90bps PBT £1.2bn Q420: £0.8bn RoTE 10.4% Q420: 5.8% Average equity1 £32.9bn Q420: £30.5bn Total assets £1,044bn Sep-21: £1,076bn RWAs £230.9bn Sep-21: £222.7bn 1 Average allocated tangible equity | 2 BBPLC FY21 income, based on location of office where transactions were recorded | Note: Charts may not sum due to rounding | 25 | Barclays FY 2021 Results | 23 February 2022 Q421 Barclays International: Corporate & Investment Bank RoTE of 10.2%, with improved profitability driven by stable income performance and a net impairment release Income £2.6bn Q420: £2.6bn Costs £1.7bn Q420: £1.8bn Cost: income ratio 65% Q420: 69% Impairment £(73)m release Q420: £52m charge PBT £1.0bn Q420: £0.8bn RoTE 10.2% Q420: 6.3% Average equity1 £28.7bn Q420: £26.3bn Total assets £979bn Sep-21: £1,011bn RWAs £200.7bn Sep-21: £192.5bn • CIB income stable at £2.6bn as strong investment banking fees offset weaker global markets revenues • Global Markets income decreased 23% − Equities -8% with strong performance in derivatives and financing but lower cash equities income − FICC -33% reflecting tighter spreads and client activity Global Markets income (£m) Q421 (USD) Q421 (GBP) YoY YoY 1,410 -22% 675 -6% 1,047 -23% 501 -8% FY20 (GBP) 7,609 2,471 5,138 FY21 (GBP) YoY 6,415 -16% 2,967 +20% 735 -32% 546 -33% 3,448 -33% • Investment Banking fees increased 27%, the best Q4 on a comparable basis2 driven by strong performance across all businesses − Advisory +24% − Equity Capital Markets +52% − Debt Capital Markets +22% • Corporate lending income decreased 5% • Transaction banking income increased 32% reflecting higher balances, improved margins and increased client activity • Costs decreased 7% reflecting reduced performance costs and lower bank levy, resulting in a cost: income ratio of 65% • Impairment release of £73m reflecting an update to the macroeconomic outlook and a net wholesale release FICC Equities 1,288 +28% Investment Banking fees income (£m) 689 +23% 212 +53% 387 +24% 956 +27% 2,731 511 +22% 1,697 158 287 +52% +24% 473 561 3,659 +34% 1,925 +13% 813 +72% 921 +64% Advisory ECM DCM Q420 Q421 629 +19% 2,136 2,260 +6% 530 344 Corporate income (£m) 453 +32% 1,546 1,672 +8% 186 176 -5% 590 588 - Corporate lending Transaction banking 1 Average allocated tangible equity | 2 Period covering 2014 – 2021. Pre 2014 financials not restated following re-segmentation in 2016 | Note: Charts may not sum due to rounding | 26 | Barclays FY 2021 Results | 23 February 2022 Q421 Barclays International: Consumer, Cards & Payments RoTE of 11.7% reflecting improved income, lower impairment and investment for growth in US cards • Income increased 4% Income £0.9bn Q420: £0.8bn Costs £0.6bn Q420: £0.6bn − Payments income increased 29% driven by higher turnover following the easing of lockdown restrictions − Private Bank income increased 15% reflecting client balance growth − International Cards and Consumer Bank income decreased 4% reflecting reduced US cards income, as balance growth was offset by higher initial costs on new account acquisitions • Total US cards balances were up 6% YoY and 5% QoQ. Average balances were up 4% YoY and 6% QoQ − Balance growth QoQ was driven by increased spend reflecting economic recovery and seasonality, although repayment levels remained elevated • Merchant acquiring volumes continue to recover following the easing of lockdown restrictions − c.40% of merchant acquiring volumes are through e- commerce channels despite a recovery in in-store spending • Costs increased 13% reflecting higher marketing spend and investments in new and existing partnerships • Impairment decreased 60% driven by lower US cards delinquencies and customer repayments Cost: income ratio 72% Q420: 65% Impairment £96m Q420: £239m Loan loss rate 105bps Q420: 286bps PBT £0.2bn Q420: £0.1bn RoTE 11.7% Q420: 2.7% Average equity1 £4.2bn Q420: £4.2bn Total Assets £64.8bn Sep-21: £64.6bn RWAs £30.2bn Sep-21: £30.2bn Q420 Q121 Q221 Q321 Q421 848 98 174 576 805 93 179 840 109 214 533 517 808 130 188 490 878 126 200 552 International Cards & Consumer Bank Private Bank Payments 21.0 19.3 20.1 21.1 22.2 65.3 29.9 35.4 61.4 32.2 29.2 In-store Online 239 65.3 15.6 49.7 21 66.0 15.3 50.7 67.3 28.2 39.1 (42) 67.2 14.8 52.5 70.0 27.2 42.8 71.5 27.6 43.9 110 96 67.5 15.0 52.5 69.4 15.3 54.1 Private Bank International Cards and Consumer Bank Total income (£m) US cards End Net Receivables ($bn) Merchant Acquiring payments processed2 (£bn) Impairment (£m) Deposits3 (£bn) 1 Average allocated tangible equity | 2 Based on the value of transactions. Includes turnover associated with government savings products. In-store refers to all non-online transactions | 3 Includes deposits from banks and customers at amortised cost | 27 | Barclays FY 2021 Results | 23 February 2022 Q421 Head Office Q420 (171) Income (£m) Costs (£m) (264) Q121 (75) (80) Q221 Q321 (27) (110) Q421 (49) (325) (114) (155) • Q421 negative income of £49m including: − Hedge accounting losses − Funding costs on legacy capital instruments − Negative treasury items • Q421 costs of £155m included costs related to the discontinued use of software assets Other net income (£m) Loss before tax (£m) RWAs (£bn) Average equity1 (£bn) 8 123 8 78 11 (458) (32) (338) (147) (198) 10.2 10.7 11.1 11.5 11.0 7.3 4.3 4.2 6.6 5.3 1 Average allocated tangible equity | 28 | Barclays FY 2021 Results | 23 February 2022 High quality and robust liquidity and funding positions Liquidity coverage ratio (LCR) Loan: deposit ratio2 160% 162% 161% 168% Loans3 (£bn) Deposits3 (£bn) 82% 71% 69% LDR 70% Minimum requirement: 100% 31-Dec-19 31-Dec-20 30-Sep-21 31-Dec-21 Liquidity pool1 (£bn) Liquidity surplus (£bn) 211 78 266 99 293 107 291 116 • Quality of the liquidity pool remains high, with the majority held in cash and deposits with central banks, and highly rated government bonds • The increase in liquidity pool was driven by continued deposit growth, borrowing from the Bank of England’s Term Funding Scheme with additional incentives for SMEs, and an increase in wholesale funding, which were partly offset by an increase in business funding consumption • Liquidity pool of £291bn represents 21% of Group balance sheet 416 339 343 481 510 519 353 362 31-Dec-19 31-Dec-20 30-Sep-21 31-Dec-21 • Loan: deposit ratio of 70% as at 31 December 2021, down 1% YoY 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 | 29 | Barclays FY 2021 Results | 23 February 2022 Year-end CET1 ratio of 15.1% Profits contributed 208bps of capital accretion in 2021, with capital distribution of 72bps QoQ CET1 ratio1 movements 15.4% 37bps 15.4% Sep-21 Attributable profit CET1 capital RWAs £47.3bn £307.5bn £1.1bn 8bps 15.7% Dividend accrual (£0.2bn) 35bps 15.3% 20bps 15.1% 15.1% RWA growth Other movements Dec-21 £6.7bn (£0.7bn) £47.5bn £314.1bn YoY CET1 ratio1 movements 15.1% 208bps 15.1% 33bps 16.9% 39bps 16.5% 40bps 16.1% 21bps 15.9% 44bps 15.4% 29bps 15.1% 15.1% Dec-20 Attributable profit Dividends paid & foreseen Buybacks executed Reduction in IFRS 9 relief Pension contributions (gross of tax) RWA growth Other movements Dec-21 CET1 capital £46.3bn £6.4bn (£1.0bn) (£1.2bn) RWAs £306.2bn (£1.3bn) (£0.6bn) (£0.7bn) (£1.0bn) £47.5bn £8.5bn £314.1bn 1 The fully loaded CET1 ratio was 14.7% as at 31 December 2021 (15.0% as at 30 September 2021 and 14.3% as at 31 December 2020) | Note: Charts and tables may not sum due to rounding | 30 | Barclays FY 2021 Results | 23 February 2022 Re-based CET1 ratio of c.14% Reflects c.30bps for announced share buyback and c.80bps expected impact from regulatory changes c.30bps 15.1% 14.8% 14.8% Near-term CET1 ratio flightpath c.80bps Includes c.35bps impact from the reversal of software amortisation benefit 14.0% c.14% • Having absorbed the impact of c.80bps of regulatory items on 1 Jan 2022, no further significant regulatory headwinds are expected over the next couple of years • Estimated impact from Basel 3.1 on the Group’s 2021 RWA level is in the range of 5-10% at the point of implementation. Timing of implementation and rule finalisation expected to be announced in H222 Dec-21 Announced up to £1bn share buyback Re-based Dec-21 for share buyback Regulatory changes which took effect from 1 Jan 2022 Re-based Dec-21 for share buyback and regulatory changes 31 | Barclays FY 2021 Results | 23 February 2022 13-14% CET1 ratio target continues to provide appropriate headroom above evolving MDA hurdle Illustrative evolution of minimum CET1 requirements and buffers 13-14% CET1 ratio target 11.6% Appropriate headroom 0.5% 2.5% 1.5% 2.6% 4.5% MDA hurdle 11.1% 2.5% 1.5% 2.6% 4.5% • CET1 ratio target of 13-14%, with an appropriate headroom over the MDA hurdle, which is currently 11.1%1 • The UK countercyclical buffer (CCyB) to be re- introduced in Q422 at 1%, and potentially further increased in Q223 to 2%. Expect the requirements to translate at a rate of c.50% for the Group • View the CCyB as a stress buffer, which can be removed by the regulator in the event of a real or potential macroeconomic stress • Introduction of Basel 3.1 may be partially mitigated by a reduction in pillar 2A requirements Dec-21 requirement Dec-22 requirement Pillar 1 requirement Pillar 2A CET1 requirement G-SII buffer Capital Conservation Buffer (CCB) Countercyclical Buffer (CCyB) 1 Barclays’ MDA hurdle at 11.1% reflecting the Pillar 2A requirement as per the PRA’s Individual Capital Requirement | 32 | Barclays FY 2021 Results | 23 February 2022 Barclays is well-positioned to deliver sustainable double digit returns 1 2.2% 2 £(1.0)bn 1.0% £(0.5)bn    Interest rates Impairment Cost dynamics  NII uplift from higher  Increased credit  Investment spend 13.4% 1 2 Post-tax modelled credit impairment release1 DTA re- measurement rates Cards and Fee income  Growth in unsecured impairment, but below pre-COVID-19 levels Tax balances  Higher effective tax 10.3%  Increase in payments 10.3% and transaction banking income rate >10%  Inflationary pressures  Efficiency savings  Lower structural cost actions3 IB performance dynamics 10.3%  Capital markets activity  Performance costs flexibility >10% 2021 RoTE Impairment Tax Illustrative headwinds and tailwinds2 Medium-term target RoTE 1 Post-tax equivalent of Stage 1 and 2 impairment release of £1,346m | 2 Bars not to scale | 3 2021 structural cost actions reduced the 2021 RoTE by 1.1% | Note: Charts may not sum due to rounding | 33 | Barclays FY 2021 Results | 23 February 2022 Outlook Income • Barclays’ diversified income streams position the Group well for the ongoing economic recovery and rising interest rates Impairment • Impairment charge is expected to remain below pre-COVID-19 pandemic levels in coming quarters given reduced unsecured lending balances and an improved macroeconomic outlook Costs • Inflationary pressures and planned investment spend are expected to result in FY22 costs excluding structural cost actions and performance costs being modestly higher than £12.0bn1 Capital • The CET1 ratio is expected to be impacted by c.80bps of regulatory changes which took effect from 1 January 2022 Capital returns • Capital returns policy incorporates a progressive ordinary dividend, supplemented as appropriate, including with share buybacks 1 Group cost outlook is based on an average rate of 1.35 (USD/GBP) in 2022 and subject to foreign currency movements | 34 | Barclays FY 2021 Results | 23 February 2022 Appendix Diversified model underpins resilient performance through cycles Diversified by income type Diversified by customer and client Diversified by geography 6% 16% 15% 37% FY21 Group income by type 63% 23% FY21 Group income by customer1 29% 10% 33% 51% FY21 Group income by geography2 11% 5% 37% NII Net interest Income (NII) 63% Non NII 44% Consumer 56% Wholesale 51% UK 49% Non-UK Fees, commission and other income Business Banking International Consumer & Payments UK Retail Investment Banking fees Global Markets Corporate UK Americas Europe Other 1 Excludes negative income from Head Office | 2 Based on location of office where transactions recorded | Note: Charts may not sum due to rounding | 36 | Barclays FY 2021 Results | 23 February 2022 Total payments income growth opportunity of c.£900m over three years from FY20-FY23 £20.0bn FY21 Group income £21.9bn £1.9bn Total payments 1,657 1,940 +17% FY20 FY21 (£m) Payments1 4062 458 +13% Next-gen Commerce Wholesale payment fees 483 6313 +31% Total payments represents 9% of Group income Interchange and FX fees 768 852 +11% Targeting strong double digit CAGR income growth FY20-FY23 across the Group’s payments businesses, capitalising on investment in the platform 1 Includes merchant acquiring and gateway services, B2B cards issuing, and corporate cards revenues | 2 FY20 excludes £(101)m related to the revaluation of Visa preference shares | 3 Includes a gain within Next-gen Commerce in Barclays UK | 37 | Barclays FY 2021 Results | 23 February 2022 Barclays Unified Payments We are seeing growth across our 3 pillars in UK SME, e-commerce and Europe as part of an integrated payments solution UK SME growth through digital capabilities and partnership channels An integrated payments solution for corporates in the UK and Europe UK and European expansion through e-commerce Providing payments services to c.361k SMEs. 1.0m Business Banking customers +11k YoY 19k corporate clients of which >50% are Corporate Bank customers 43% of the value of transactions are processed online +14% YoY1 • Strengthened software partnerships by enabling integrated payments through enhanced onboarding capability • Partnered with the Corporate Bank to gain access to an international customer base across sectors • Continued to scale our e-commerce focused gateway (SmartPay Fuse) • Deployed SmartBusiness which enables business bank customers to take advantage of a variety of software applications that benefit their business • Continued success of the small business Select Cashback credit card • Simplified reporting by integrating with the Corporate Bank’s servicing platform iPortal • Launched Barclaycard Multicurrency, providing multicurrency capabilities to c.300 e-commerce clients to date • Launched Bank Pay, which enables instant payments through open banking • Increased the adoption of our virtual B2B offering solution 1 Excluding payments processed associated with government savings products | Note: All figures on a FY21 basis | 38 | Barclays FY 2021 Results | 23 February 2022 Structural hedge Structural hedge program update • The Group’s combined gross equity and product structural hedge contribution was £371m in Q421 (Q321: £353m) • The combined structural hedge notional as at Dec-21 was £228bn, an increase of £4bn from Sep-21 and a £57bn increase from Dec-19 – The £57bn increase in structural hedge notional is relative to an increase in Group deposits of £103bn since Dec-19 • The average duration of the structural hedge remains at close to 3 years • FY21 gross structural hedge income across the Group was £1,415m, £236m lower than FY20 – Given the move in the yield curve and increase in hedge notional, the structural hedge contribution in FY22 is currently expected to be higher than in FY21 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Hedge notional (£bn) 171 174 174 181 188 192 198 224 228 GBP 5 Year swap rate1 (%) 1.5 1.0 0.5 0.0 2016 -0.5 2017 Zero Yield Close 2018 2019 2020 5 Year Moving Average 2021 2022 Q120 Q220 Q320 Q420 Q121 Q221 Q321 Q421 Gross hedge contribution (£m) 435 431 407 377 350 341 353 371 1 UK Pound Sterling SONIA OIS Zero 5 Year Point (Refinitiv: GBPOIS5YZ=R) | 39 | Barclays FY 2021 Results | 23 February 2022 Interest rate sensitivity Illustrative sensitivity of Group NII to a parallel shift in interest rate curves1 Impact of parallel shifts in interest rate curves (£m) Year 1 Year 2 Year 3 • Around two thirds of the Group income benefit from the illustrative 25bps upward parallel shift is in BUK, with the remaining in BI • This analysis assumes an instantaneous parallel shift in interest rate curves 25bps upward c.275 c.375 c.525 25bps downward c.(450) c.(575) c.(700) • The sensitivity is calculated using a constant balance sheet - i.e. maturing business is reinvested at a consistent tenor and margin • Actual pricing decisions made in the event of rate rises or falls may differ from those shown in the illustrative scenarios. In the event of multiple rate rises, the pass-through may vary over time • Pass-through is limited on the downward scenario, as customer rates are floored at 0% for GBP and USD deposits2, including when the downward scenario reflects negative base rates • It does not apply floors to shocked market rates, thus reflecting, for illustrative purposes, the impact of negative base rates on Group NII in the downward scenario • 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 1 This sensitivity 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 provides the annual impact on Group NII over the next three years, 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 | 2 With regards to the relatively modest balance of EUR deposits that are currently subject to charging, no incremental pass-through of further rates reductions are assumed in the illustrative scenario | 40 | Barclays FY 2021 Results | 23 February 2022 Retaining management adjustments due to economic uncertainty Baseline macroeconomic variables (MEVs) MEVs used in Q321 results Q421 MEVs Change in MEVs 2021 2022 2023 2021 2022 2023 2021 2022 2023 • Q421 baseline UK and US MEVs have improved from Q321, including unemployment forecasts in both the UK and US UK GDP Annual growth UK unemployment Quarterly average US GDP Annual growth US unemployment Quarterly average 6.5% 5.2% 2.3% 6.2% 4.9% 2.3% -0.3% -0.3% - 5.0% 5.1% 4.7% 4.8% 4.7% 4.5% -0.2% -0.4% -0.2% 6.8% 4.4% 2.4% 5.5% 3.9% 2.6% -1.3% -0.5% +0.2% 5.5% 4.2% 4.0% 5.5% 4.2% 3.6% - - -0.4% Balance sheet impairment allowance and management adjustment Impairment allowance (£m) Dec-19 Sep-21 Write offs P&L release Other incl. FX Dec-21 • Allowance pre management adjustment 6,290 4,794 Management adjustment 340 1,963 Of which economic uncertainty adjustments - 2,039 Of which other adjustments 340 (76) 4,798 1,486 1,692 (206) Total Of which on balance sheet Of which off balance sheet 6,630 6,757 (352) (31) (90) 6,284 6,308 6,210 322 547 5,742 542 Total Group impairment allowance reduced by £0.5bn to £6.3bn, reflecting write-offs of £352m, an impairment release of £31m and other movements including FX Management judgements have been maintained in respect of economic uncertainty, including customers and clients considered to be potentially more vulnerable as government and other support schemes have started to reduce Given reduced unsecured lending balances and an improved macroeconomic outlook, the impairment charge is expected to remain below pre-COVID-19 pandemic levels in coming quarters 41 | Barclays FY 2021 Results | 23 February 2022 Dec-21 UK and US cards coverage ratios still meaningfully above pre-pandemic levels Gross exposure (£bn) 16.5 0.8 5.1 10.6 11.9 0.8 3.6 9.9 0.5 2.1 7.5 7.3 UK cards Impairment allowance (£bn) 2.0 1.7 0.5 1.1 0.6 1.2 0.1 0.2 1.3 0.3 0.8 0.1 US cards Coverage ratio Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio 10.5% 16.6% 12.8% 65.1% 73.1% 67.0% 21.6% 33.1% 36.6% 1.2% 2.4% 2.0% 22.5 1.5 2.8 18.2 18.0 0.9 1.7 15.4 17.1 1.3 4.1 11.7 2.5 1.0 1.1 0.3 2.1 1.2 0.6 0.3 1.9 0.7 0.7 0.5 9.1% 14.3% 10.6% 79.6% 78.1% 72.6% 21.3% 27.% 40.3% 1.6% 2.7% 3.5% Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 UK Personal loans and partner finance Germany and other unsecured lending Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio Gross exposure (£bn) Impairment allowance (£bn) Coverage ratio 12.4 0.6 1.6 10.2 8.3 0.5 1.1 7.6 0.3 0.8 6.6 6.5 0.7 0.4 0.2 0.1 0.7 5.4% 9.0% 6.0% 0.4 0.5 70.7% 80.4% 73.2% 0.3 0.1 0.1 0.2 0.1 10.5% 21.4% 18.0% 0.8% 1.6% 1.1% 8.8 0.5 1.4 9.2 0.5 1.5 6.9 7.2 10.3 0.5 1.1 8.7 0.5 0.2 0.2 0.1 0.4 0.2 0.2 0.1 0.4 0.2 0.1 0.1 4.8% 5.7% 3.9% 40.6% 41.7% 42.1% 11.5% 14.9% 10.6% 0.7% 1.1% 0.7% Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Stage 1 Stage 2 Stage 3 42 | Barclays FY 2021 Results | 23 February 2022 Wholesale exposures are diversified and appropriately covered, especially in selected vulnerable sectors 45.8 Wholesale lending (£bn) 151.7 Selected sectors (£bn/coverage ratio %) Wholesale and vulnerable sector exposure 151.7 Group on balance sheet exposure £367.2bn Wholesale Home Loans Other Retail 169.7 16.4 62.1 13.4 27.9 31.8 Selected Sectors Other Corporates 1 ESHLA Financial Institutions Debt Securities 16.4 (2.1%) 0.5 (9.7%) 0.6 (2.8%) 1.7 (3.2%) 2.4 (1.8%) 4.9 (1.9%) 6.3 (1.4%) Air Travel Shipping Transportation Oil and gas Retail Hospitality Well diversified portfolio across sectors and geographies • Majority of exposure (>65%) is to clients internally rated as Investment • Covenants in place based on leverage, LTVs, and debt service ratios for 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 • • • Active identification and management of high risk sectors have been in place following the Brexit referendum, with actions taken to enhance lending criteria and reduce risk profile 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) 1 Education, Social Housing and Local Authority | 43 | Barclays FY 2021 Results | 23 February 2022 Retail portfolios in the UK and US continue to be appropriately positioned UK mortgages • Strong balance growth supported by elevated demand and stamp duty relief • Arrears levels at multi-year lows • 50.7% average balance weighted LTV of mortgage book stock • Buy-to-Let mortgages represent 13.1% of the book UK mortgage balance growth within risk appetite • A suite of prudent risk actions taken in 2020 • Risk actions unwound during 2021 as outlook improved • Balances remain low compared to pre-COVID-19 levels • Arrears levels have reduced significantly UK cards • Balances as a result of promotional balance transfers represent £1.1bn, all of which have a duration of <24 month US cards • Portfolio remains well positioned across key segments with good risk/return balance • Continuing our focus on partnership co-brand strategy UK cards arrears rates improved YoY US cards arrears rates improved YoY 143.3 67.9% 51.1% FY19 148.3 67.5% 50.7% FY20 158.2 69.5% 50.7% FY21 Average LTV on flow Average LTV on stock Gross L&A 14.7 1.7% 0.8% FY19 9.9 1.7% 0.8% FY20 8.7 1.0% 0.2% FY21 30 day arrears 90 day arrears Net L&A Note: The marked reduction in 30 & 90 days delinquency for UK cards is as a result of a change in charge off policy; notably changing the point of charge off from 180 to 120 days 20.5 2.7% 1.4% FY19 14.7 2.5% 1.4% FY20 16.1 1.6% 0.8% FY21 30 day arrears 90 day arrears Net L&A 44 | Barclays FY 2021 Results | 23 February 2022 QoQ and YoY TNAV per share movements QoQ TNAV movements (pence per share) 7 1 5 4 2 287 292 Sep-21 Earnings Repurchase of shares Cash flow hedge reserve Pension remeasurement Other movements Dec-21 • TNAV per share increased 5p to 292p due to • Partly offset by: – +7p of earnings – +4p pension remeasurement – +1p net impact of share buybacks – -5p cash flow hedge reserve due to a decrease in the fair value of hedges as a result of an increase in the yield curve – -1p of shares under employee share schemes – -1p FVOCI1 reserve YoY TNAV movements (pence per share) 38 3 3 14 4 5 269 292 Dec-20 Earnings Dividends paid Repurchase of shares Cash flow hedge reserve Pension remeasurement Other movements Dec-21 • TNAV per share increased 23p to 292p due to – +38p of earnings – +4p pension remeasurement – +3p net impact of share buybacks 1 Fair value through other comprehensive income 45 | Barclays FY 2021 Results | 23 February 2022 • Partly offset by: – -14p cash flow hedge reserve – -3p dividends paid – -2p FVOCI1 reserve – -2p employee share scheme – -1p other movements RWAs increased QoQ and YoY driven by market risk QoQ RWA movements (£bn) 0.3 0.7 313.5 313.5 314.1 12.3 301.5 2.4 301.5 Counterparty credit risk Market risk 1 FX Other Dec-21 YoY RWA movements (£bn) 0.7 0.3 9.1 306.0 2.0 304.0 314.4 314.1 314.1 Counterparty credit risk Market risk 1 FX Other Dec-21 307.5 Sep-21 3.6 303.9 Credit risk excl. disposals 306.2 Dec-20 2.2 304.0 Credit risk excl. disposals 1 FX on credit risk RWAs | Note: Charts may not sum due to rounding | 46 | Barclays FY 2021 Results | 23 February 2022 IFRS 9 transitional relief of c.40bps as at Dec-21 Constructive regulatory action in Q220 gave greater relief for Stage 1 and 2 impairments • 100% transitional relief for modified impairment post Dec-19 applied until end-2021 • Transitional relief schedule for static component per original schedule • Total post-tax IFRS 9 transitional relief as at Dec-21 is £1.2bn or c.40bps capital, down c.40bps compared to Dec-20 – IFRS 9 modified transitional relief applies to Stage 1 and 2 impairments – Transitional basis of capital remains the relevant measure for our capital adequacy assessment by regulators – Total post-tax IFRS 9 transitional relief is expected to reduce by c.15bps to c.25bps from 1 Jan 2022 IFRS 9 Transitional relief CET1 add-back (£bn) 2.6 1.7 0.9 1.1 1.1 1.4 0.7 0.7 1.2 0.6 0.7 0.8 0.4 0.3 Modified Static Dec-19 Dec-20 Sep-21 Dec-21 Jan-22 Relief Schedule Pre-2020 2020 onwards 2020 2021 2022 2023 2024 70% 50% 25% 100% 100% 75% 50% 25% Note: Charts may not sum due to rounding | 47 | Barclays FY 2021 Results | 23 February 2022 Pension deficit reduction contributions CET1 ratio headwinds from pension reduction contributions fully incorporated into prudent capital plan and CET1 target • As at 31 December 2021, the Group’s IAS 19 pension surplus across all schemes was £3.6bn (December 2020: £1.5bn). The UK Retirement Fund (UKRF), which is the Group’s main scheme, had an IAS 19 pension surplus of £3.8bn (December 2020: £1.8bn). The movement for the UKRF was driven by £700m of deficit contributions, higher corporate bond yields and favourable asset returns, partially offset by higher expected long term price inflation • The latest annual update as at 30 September 2021 showed the funding position had improved to a £0.6bn surplus from a £0.9bn deficit as at 30 September 2020. The improvement was mainly due to £0.7bn of deficit reduction contributions and favourable asset returns, partially offset by higher expectations for future price inflation Capital impact of deficit reduction contributions (£bn) 2020 2021 2022 2023 2024 2025 2026 Based on 2019 Triennial valuation (0.5) (0.7) (0.3) (0.3) (0.5) (paid in Q419)1 - Jun-2020 Investment in Senior Notes2 Capital impact (pre-tax) 0.75 0.25 - - (0.25) (0.25) (0.25) (0.7) (0.3) (0.55) (0.75) (0.25) Capital impact (bps) – based on Dec-21 RWAs 8bps (22)bps (10)bps (18)bps (24)bps (8)bps - - - Sum 2020-26 (2.3) - (2.3) 1 £500m paid in Q419 relates to the unwind of Senior notes | 2 Barclays Bank PLC asked the UKRF Trustee to consider an investment in a Senior note (similar to the issued note in December 2019) in order to manage the capital impact of 2020 contributions to the UKRF | 48 | Barclays FY 2021 Results | 23 February 2022 Group leverage position appropriately managed Minimum leverage requirements and buffers under the UK regime Dec-211: UK Spot: 5.3% UK Average: 4.9% Reg min 3.775% 1.5% headroom 0.0% 0.525% • Headroom to minimum leverage requirement of 150bps in Q421, while the RWA-based CET1 ratio is expected to remain our primary regulatory constraint through the cycle • Following the BoE’s Financial Policy Committee (FPC) and the PRA’s review of the UK leverage framework, the Group now has a single leverage requirement from 1 Jan 2022. The requirement must be met on a daily basis UK Spot Leverage Ratio 1.3% headroom 0.2% 0.525% Reg min 3.975% 3.25% 3.25% 5.1% 5.1% 5.1% 5.3% 5.1% 5.3% Dec-21 requirement Dec-22 requirement BoE minimum leverage requirement G-SII leverage buffer Countercyclical Leverage Buffer 1 Leverage ratio calculated applying the transitional arrangements of the CRR as amended by CRR II. This includes IFRS 9 transitional arrangements | 49 | Barclays FY 2021 Results | 23 February 2022 Dec-17 Dec-18 Dec-19 Dec-20 Sep-21 Dec-21 Financial results tables FY21 notable items Year ended (£m) Income Valuation loss on Barclays’ preference shares in Visa Inc. Repurchases of some of the Barclays Bank PLC 7.625% Contingent Capital Notes Costs Structural cost actions - real estate review Other structural cost actions COVID-19 Community Aid Package Litigation & Conduct Litigation & Conduct across divisions Tax charge Re-measurement of UK deferred tax assets Other net income Fair value gain / (loss) on Barclays investment in the Business Growth Fund Dec-21 Dec-20 - - (266) (382) (5) (101) (85) - (368) (95) Consumer, Cards and Payments Head Office Head Office Group Head Office (177) (153) Group 462 220 118 Group (23) Head Office Three months ended (£m) Income Dec-21 Dec-20 Repurchases of some of the Barclays Bank PLC 7.625% Contingent Capital Notes - (85) Head Office Costs Structural cost actions COVID-19 Community Aid Package Litigation & Conduct Litigation & Conduct across divisions 51 | Barclays FY 2021 Results | 23 February 2022 (256) - (261) (22) Group Head Office (46) (47) Group FY21 split of payments income by division Year ended (£m) Unified Payments Barclays Cubed / Wholesale payment fees Interchange and FX fees Total Dec-21 Dec-20 % change BUK - 3642 629 993 CIB - 265 163 429 CC&P Total BUK 458 1 60 518 458 631 852 1,940 - 248 553 800 CIB - 235 157 393 CC&P Total 4061 - 58 464 406 483 768 1,657 BUK - 47% 14% 24% CIB - 13% 4% 9% CC&P Total 13% - 3% 12% 13% 31% 11% 17% Three months ended (£m) Dec-21 Dec-20 % change BUK CIB CC&P Total BUK CIB CC&P Total Unified Payments Barclays Cubed / Wholesale payment fees Interchange and FX fees Total - 91 182 274 - 73 46 119 126 - 18 144 126 165 246 537 - 75 148 223 - 57 41 98 98 - 30 128 98 132 219 449 BUK - 21% 23% 23% CIB - 28% 12% 21% CC&P Total 29% - (40%) 13% 29% 25% 12% 20% 1 Excludes £(101)m related to the revaluation of Visa preference shares | 2 Includes a gain within Barclays Cubed: Next-gen Commerce | Note: Tables may not sum due to rounding | 52 | Barclays FY 2021 Results | 23 February 2022 Dec-21 Dec-20 % change Three months ended (£m) Dec-21 Dec-20 % change 21,940 21,766 +1% Income -5% +43% -16% -4% +175% -97% +194% +40% +6% 653 (4,838) (14,092) (13,434) (170) (177) (299) (153) (14,439) (13,886) 260 8,414 (1,188) 7,226 (47) (804) 6,375 37.5p 13.4% 66% 23 3,065 (604) 2,461 (78) (857) 1,526 8.8p 3.2% 64% - 138bps £314.1bn £306.2bn Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Tax charge Profit after tax Non-controlling interests Other equity instrument holders Attributable profit Performance measures Basic earnings per share RoTE Cost: income ratio Loan loss rate Balance sheet RWAs +4% -1% +43% +2% +3% -43% +128% +31% +182% +27% +4% 5,160 31 4,941 (492) (3,514) (3,480) (170) (46) (299) (47) (3,730) (3,826) 13 1,474 (112) 1,362 (27) (218) 1,117 6.6p 9.3% 72% - 23 646 (163) 483 (37) (226) 220 1.3p 1.8% 77% 56bps £314.1bn £306.2bn FY21 Group Year ended (£m) Income Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Tax charge Profit after tax Non-controlling interests Other equity instrument holders Attributable profit Performance measures Basic earnings per share RoTE Cost: income ratio Loan loss rate Balance sheet RWAs 53 | Barclays FY 2021 Results | 23 February 2022 FY21 Barclays UK Year ended (£m) – Personal Banking – Barclaycard Consumer UK – Business Banking Income – Personal Banking – Barclaycard Consumer UK – Business Banking Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Attributable profit Performance measures RoTE Average allocated tangible equity Cost: income ratio Loan loss rate NIM Balance sheet L&A to customers at amortised cost Customer deposits at amortised cost RWAs 54 | Barclays FY 2021 Results | 23 February 2022 Dec-21 Dec-20 % change Three months ended (£m) Dec-21 Dec-20 % change +10% -18% +7% +3% +67% -2% +28% -16% -2% 3,883 1,250 1,403 6,536 28 404 (67) 365 3,522 1,519 1,306 6,347 (380) (881) (206) (1,467) (4,357) (4,270) (36) (37) (50) (32) (4,430) (4,352) - 2,471 1,756 18 546 325 17.6% 3.2% £10.0bn £10.1bn 68% - 2.52% 69% 68bps 2.61% £208.8bn £205.4bn £260.6bn £240.5bn £72.3bn £73.7bn – Personal Banking – Barclaycard Consumer UK – Business Banking Income – Personal Banking – Barclaycard Consumer UK – Business Banking Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net (expenses) / income Profit before tax Attributable profit Performance measures RoTE Average allocated tangible equity Cost: income ratio Loan loss rate NIM Balance sheet L&A to customers at amortised cost Customer deposits at amortised cost RWAs 983 352 364 895 354 377 1,699 1,626 8 114 (63) 59 (68) (78) (24) (170) (1,202) (1,134) (36) (5) (50) 4 +10% -1% -3% +4% -163% -6% +28% (1,243) (1,180) -5% (1) 514 420 6 282 160 +82% +163% 16.8% 6.5% £10.0bn £9.8bn 73% - 2.49% 73% 31bps 2.56% £208.8bn £205.4bn £260.6bn £240.5bn £72.3bn £73.7bn FY21 Barclays International Year ended (£m) Income Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Attributable profit Performance measures RoTE Average allocated tangible equity Cost: income ratio Loan loss rate NIM Balance sheet RWAs Dec-21 Dec-20 % change Three months ended (£m) Dec-21 Dec-20 % change 15,665 15,921 -2% Income -4% +44% -160% -3% +43% +84% +117% 288 (9,076) (134) (125) (3,280) (8,765) (240) (48) (9,335) (9,053) 40 6,658 4,817 28 3,616 2,220 14.9% 7.1% £32.4bn £31.5bn 60% - 57% 257bps 4.01% 3.64% £230.9bn £222.3bn Impairment charges – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Attributable profit Performance measures RoTE Average allocated tangible equity Cost: income ratio Loan loss rate NIM Balance sheet RWAs +1% +92% -1% +44% +2% -67% +41% +94% 3,510 (23) 3,486 (291) (2,160) (2,133) (134) (38) (240) (9) (2,332) (2,382) 3 1,158 856 9 822 441 10.4% 5.8% £32.9bn £30.5bn 66% 7bps 4.14% 68% 90bps 3.41% £230.9bn £222.3bn 55 | Barclays FY 2021 Results | 23 February 2022 % change in USD -32% -6% -22% +24% +53% +23% +28% FY21 Barclays International: Corporate & Investment Bank % change in USD -28% +28% -10% +73% +84% +21% +42% Year ended (£m) Dec-21 Dec-20 % change – FICC – Equities Global Markets – Advisory – Equity capital markets – Debt capital markets Investment Banking fees – Corporate lending – Transaction banking Corporate Total income Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Attributable profit Performance measures RoTE -33% +20% -16% +64% +72% +13% +34% +8% +6% -1% -2% +43% -1% -67% +46% +65% 3,448 2,967 6,415 921 813 1,925 3,659 588 1,672 2,260 5,138 2,471 7,609 561 473 1,697 2,731 590 1,546 2,136 12,334 12,476 473 (1,559) (6,818) (6,689) (128) (17) (226) (4) (6,963) (6,919) 2 5,846 4,202 6 4,004 2,554 14.9% 9.5% Three months ended (£m) Dec-21 Dec-20 % change – FICC – Equities Global Markets – Advisory – Equity capital markets – Debt capital markets Investment Banking fees – Corporate lending – Transaction banking Corporate Total income Impairment releases / (charges) – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Attributable profit Performance measures RoTE -33% -8% -23% +24% +52% +22% +27% -5% +32% +19% +3% +43% +7% -50% +32% +77% 546 501 812 542 1,047 1,354 287 158 511 956 176 453 629 232 104 418 754 186 344 530 2,632 2,638 73 (52) (1,562) (1,603) (128) (13) (226) 2 (1,703) (1,827) 1 1,003 733 2 761 413 10.2% 6.3% Average allocated tangible equity £28.3bn £27.0bn Average allocated tangible equity £28.7bn £26.3bn Cost: income ratio Balance sheet RWAs 56% 55% £200.7bn £192.2bn Cost: income ratio Balance sheet RWAs 65% 69% £200.7bn £192.2bn 56 | Barclays FY 2021 Results | 23 February 2022 FY21 Barclays International: Consumer, Cards & Payments Year ended (£m) Total Income Impairment charges – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit / (loss) before tax Attributable profit / (loss) Performance measures RoTE Average allocated tangible equity Cost: income ratio Loan loss rate Balance sheet RWAs Dec-21 Dec-20 % change Three months ended (£m) Dec-21 Dec-20 % change -3% +89% -9% +57% -145% -11% +73% 3,331 (185) (2,258) (6) (108) 3,445 (1,721) (2,076) (14) (44) (2,372) (2,134) 38 812 615 22 (388) (334) 15.0% £4.1bn 71% (7.5%) £4.5bn 62% 51bps 517bps £30.2bn £30.1bn Total Income Impairment charges – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Profit before tax Attributable profit Performance measures RoTE Average allocated tangible equity Cost: income ratio Loan loss rate Balance sheet RWAs +4% +60% -13% +57% -127% -13% -71% +154% 878 (96) (598) (6) (25) 848 (239) (530) (14) (11) (629) (555) 2 155 123 7 61 28 11.7% £4.2bn 72% 2.7% £4.2bn 65% 105bps 286bps £30.2bn £30.1bn 57 | Barclays FY 2021 Results | 23 February 2022 FY21 Head Office Year ended (£m) Income Impairment charges – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income / (expenses) Loss before tax Attributable loss Performance measures Average allocated tangible equity Balance sheet Dec-21 Dec-20 % change Three months ended (£m) Dec-21 Dec-20 % change (261) - (659) - (15) (674) 220 (715) (198) (502) (91) (399) (9) (73) (481) (23) (1,097) (1,019) £5.0bn £6.7bn +48% -65% +79% -40% +35% +81% Income Impairment charges – Operating costs – UK bank levy – Litigation and conduct Total operating expenses Other net income Loss before tax Attributable loss Performance measures Average allocated tangible equity Balance sheet +71% +84% +29% +93% +41% +38% +57% +58% (49) (5) (152) - (3) (171) (31) (213) (9) (42) (155) (264) 11 (198) (159) 8 (458) (381) £5.3bn £7.3bn £11.0bn £10.2bn RWAs £11.0bn £10.2bn RWAs 58 | Barclays FY 2021 Results | 23 February 2022 Exchange rates and share count information Exchange rates Dec-21 Sep-21 Dec-20 Period end - USD/GBP YTD average - USD/GBP 3 month average - USD/GBP Period end - EUR/GBP YTD average - EUR/GBP 3 month average - EUR/GBP 1.35 1.38 1.35 1.19 1.16 1.18 1.35 1.39 1.38 1.16 1.16 1.17 1.37 1.28 1.32 1.12 1.13 1.11 QoQ % change YoY % change -1% -1% -2% +3% +1% +8% +2% +6% +3% +6% Share count information Dec-21 Sep-21 Dec-20 Period end number of shares (m) YTD average number of shares (m) 16,752 16,985 16,851 17,062 17,359 17,300 59 | Barclays FY 2021 Results | 23 February 2022 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 and as such rules and regulations form part of UK law pursuant to the EU (Withdrawal) Act 2018, subject to the temporary transitional powers (TTP) available to UK regulators to delay or phase-in on-shoring changes to UK regulatory requirements between 31 December 2020 and 31 March 2022. Throughout the TTP period, the Bank of England and the PRA are expected to review the UK legislation framework and any disclosures made by the Group will be subject to any resulting guidance. All such regulatory requirements are subject to change. References herein to ‘CRR as amended by CRR II’ mean, unless otherwise specified, CRR as amended by CRR II, as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018 and as amended by the Financial Services Act 2021 and subject to the TTP, as at the applicable reporting date; 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 December 2021, updating the Bank of England's June 2018 policy statement, and its 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, along with international developments. The Pillar 2A requirement is also subject to at least annual review; 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. Important Information In preparing the ESG information in this FY 2021 Results Presentation we have: (i) made a number of key judgements, estimations and assumptions, and the processes and issues involved are complex. This is for example the case in relation to financed emissions, portfolio alignment, and classification of environmental and social financing. (ii) used ESG and climate data, models and methodologies that we consider to be appropriate and suitable for these purposes as at the date on which they were deployed. However, these data, models and methodologies are not of the same standard as those available in the context of other financial information, nor subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally accepted accounting principles. There is an inability to rely on historical data as a strong indicator of future trajectories, in the case of climate change and its evolution. Outputs of models, processed data and methodologies will also be affected by underlying data quality which can be hard to assess. (iii) reproduced certain data assured by KPMG in the Annual Report. Barclays appointed KPMG to perform limited independent assurance over selected ESG content in the Annual Report which has been marked in the Annual Report with the symbol Δ. The assurance engagement was planned and performed in accordance with the International Standard on Assurance Engagements (UK) 3000 Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and the International Standard on Assurance Engagements 3410 Assurance of Greenhouse Gas Statements. A limited assurance opinion was issued, which includes details of the scope, reporting criteria, respective responsibilities, work performed, limitations and conclusion, and is available on our ESG resource hub at: https://home.barclays/ sustainability/esg-resourcehub/. Certain data assured by KPMG in the Annual Report has been reproduced in this FY 2021 Results Presentation. This is marked in this FY2021 Results Presentation with the symbol Δ. No other information in this FY2021 Results Presentation has been subject to external assurance or audit. (iv) the data, models and methodologies used and the judgements estimates or assumptions made are rapidly evolving and this may directly or indirectly affect the metrics, data points and targets contained in this FY 2021 Results Presentation. We continue to review and develop our approach to data, models and methodologies in line with market principles and standards as this subject area matures. Further development of accounting and/or reporting standards could impact (potentially materially) the performance metrics, data points and targets contained in this report. In future reports or presentations we may present some or all of the information for this reporting period using updated or more granular data or improved models, methodologies, market practices or standards. Such re-presented information may result in different outcomes than those included in this FY 2021 Results Presentation. Where information is re-presented from time to time, we will identify this and (where we think it is appropriate) include an explanation. It is important for readers and users of this presentation to be aware that direct like-for-like comparisons of each piece of information disclosed may not always be possible from one reporting period to another. 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, capital distributions (including dividend pay-out ratios and expected payment strategies), projected levels of growth in the banking and financial markets, projected costs or savings, any commitments and targets (including, without limitation, environmental, social and governance (ESG) 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. Forward- looking statements may be affected by a number of factors, including, without limitation: 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, emerging and developing ESG reporting 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, the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, environmental, social and geopolitical risks, and 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 UK’s exit from the European Union (“EU”), the effects of the EU-UK Trade and Cooperation Agreement and the disruption that may subsequently result in the UK and globally; the risk of cyber-attacks, information or security breaches or technology failures on the Group’s reputation, business or operations; 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, capital distributions, capital, leverage or other regulatory ratios or other financial and non-financial metrics or performance measures or ability to meet commitments and targets may differ materially from the statements or guidance set forth in the Group’s forward-looking statements. Additional risks and factors which may impact the Group’s future financial condition and performance are identified in Barclays PLC’s filings with the SEC (including, without limitation, Barclays PLC’s Annual Report on Form 20-F for the fiscal year ended 31 December 2021), which are available on the SEC’s website at www.sec.gov. Subject to Barclays’ 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. Non-IFRS performance measures are defined and reconciliations are available on our results announcement for the period ended 31 December 2021. 60 | Barclays FY 2021 Results | 23 February 2022 

Continue reading text version or see original annual report in PDF format above