Project on Barclays PLC

Barclays PLC
Results Announcement

30 June 2014






Barclays PLC – 2014 Interim Results


Table of Contents

Results Announcement Page
Performance Highlights 3-4
Group Chief Executive’s Review 5
Group Finance Director’s Review 6-8
Condensed Consolidated Financial Statements 9-13
Results by Business
? Personal and Corporate Banking 14-15
? Barclaycard 16-17
? Africa Banking 18-19
? Investment Bank 20-22
? Head Office 23-25
? Barclays Non-Core 26-27
Barclays Results by Quarter 28-29
Performance Management
? Returns and Equity 30-31
? Margins and Balances 32
Risk Management
? Overview 33
? Funding Risk - Liquidity 33-36
? Funding Risk - Capital 37-42
? Credit Risk 43-50
? Market Risk 51-52
Statement of Directors’ Responsibilities 53
Independent Auditors’ Review Report to Barclays PLC 54
Financial Statement Notes 55-88
Shareholder Information 89-90







BARCLAYS PLC, 1 CHURCHILL PLACE, LONDON, E14 5HP, UNITED KINGDOM. TELEPHONE: +44 (0) 20 7116 1000. COMPANY NO. 48839



Barclays PLC – 2014 Interim Results


Notes
The term Barclays or Group refers to Barclays PLC together with its subsidiaries. Unless otherwise stated, the income statement analysis
compares the six months to 30 June 2014 to the corresponding six months of 2013 and balance sheet analysis as at 30 June with
comparatives relating to 31 December 2013. The abbreviations ‘£m’ and ‘£bn’ represent millions and thousands of millions of Pounds
Sterling respectively; the abbreviations ‘$m’ and ‘$bn’ represent millions and thousands of millions of US Dollars respectively; ‘€m’ and ‘€bn’
represent millions and thousands of millions of Euros respectively; and ‘C$m’ and ‘C$bn’ represent millions and thousands of millions of
Canadian Dollars respectively.
The comparatives have been restated to reflect the implementation of the Group structure changes and the reallocation of elements of the
Head Office results under the revised business structure. These restatements were detailed in our announcement on 10 July 2014,
accessible at http://www.barclays.com/barclays-investor-relations/results-and-reports. Balance sheet comparative figures have also been
restated to adopt the offsetting amendments to IAS 32, Financial Instruments: Presentation.
Adjusted profit before tax, adjusted attributable profit and adjusted performance metrics have been presented to provide a more consistent
basis for comparing business performance between periods. Adjusting items are considered to be significant and not representative of the
underlying business performance. Items excluded from the adjusted measures are: the impact of own credit; the provision for Payment
Protection Insurance redress payments and claims management costs (PPI redress); the provision for interest rate hedging products
redress and claims management costs (interest rate hedging products redress); and goodwill impairment. As Management reviews
adjusting items at a Group level, segmental results are presented excluding these items in accordance with IFRS 8: Operating Segments.
Statutory and adjusted performance is reconciled at a Group level only.
Relevant terms that are used in this document but are not defined under applicable regulatory guidance or International Financial
Reporting Standards (IFRS) are explained in the Results glossary that can be accessed at www.Barclays.com/results.
The information in this announcement, which was approved by the Board of Directors on 29 July 2014 does not comprise statutory
accounts within the meaning of Section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 December 2013, which
included certain information required for the Joint Annual Report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities
and Exchange Commission (SEC) and which contained an unqualified audit report under Section 495 of the Companies Act 2006 (which
did not make any statements under Section 498 of the Companies Act 2006) have been delivered to the Registrar of Companies in
accordance with Section 441 of the Companies Act 2006.
These results will be furnished as a Form 6-K to the SEC as soon as practicable following their publication. Once furnished with the SEC,
copies of the Form 6-K will also be available from the Barclays Investor Relations website www.barclays.com/investorrelations and from
the SEC’s website at http://www.sec.gov.

Forward-looking statements
This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934,
as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group’s plans and its current
goals and expectations relating to its future financial condition and performance. Barclays cautions readers that no forward-looking
statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking
statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts.
Forward-looking statements sometimes use words such as ‘may’, ‘will’, ‘seek’, ‘continue’, ‘aim’, ‘anticipate’, ‘target’, ‘projected’, ‘expect’,
‘estimate’, ‘intend’, ‘plan’, ‘goal’, ‘believe’, ‘achieve’ or other words of similar meaning. Examples of forward-looking statements include,
among others, statements regarding the Group’s future financial position, income growth, assets, impairment charges and provisions,
business strategy, capital, leverage and other regulatory ratios, payment of dividends (including dividend pay-out ratios), projected levels of
growth in the banking and financial markets, projected costs or savings, original and revised commitments and targets in connection with
the Transform Programme and Group Strategy Update, run-down of assets and businesses within Barclays Non-Core, estimates of capital
expenditures and plans and objectives for future operations, projected employee numbers 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. These
may be affected by changes in legislation, the development of standards and interpretations under International Financial Reporting
Standards (IFRS), 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 (including with regard to the future structure of the Group)
applicable to past, current and future periods; UK, US, Africa, Eurozone and global macroeconomic and business conditions; the effects of
continued 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
the Group; the potential for one or more countries exiting the Eurozone; the implementation of the Transform Programme; 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 future results, dividend payments, and capital and leverage ratios may differ materially from the plans, goals,
and expectations set forth in the Group’s forward-looking statements. Additional risks and factors are identified in our filings with the SEC
including our Annual Report on Form 20-F for the fiscal year ended 31 December 2013, which are available on the SEC’s website at
http://www.sec.gov.

Any forward-looking statements made herein speak only as of the date they are made and it should not be assumed that they have been
revised or updated in the light of new information or future events. Except as required by the Prudential Regulation Authority, the Financial
Conduct Authority, the London Stock Exchange plc (the LSE) or applicable law, Barclays expressly disclaims any obligation or undertaking
to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Barclays’
expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. The reader
should, however, consult any additional disclosures that Barclays has made or may make in documents it has published or may publish via
the Regulatory News Service of the LSE and/or has filed or may file with the SEC.

Performance Highlights



Barclays PLC – 2014 Interim Results 2


Income Statement
Group performance
? Adjusted profit before tax was down 7% to £3,349m largely driven by currency movements and a reduction in the
Investment Bank profitability, partially offset by improvements in Personal and Corporate Banking (PCB), Barclaycard,
and Barclays Non-Core (BNC)
? Adjusted income decreased 12% to £13,332m whilst impairment reduced by 33% to £1,086m, resulting in a 9%
decrease in net operating income to £12,246m
? Adjusted operating expenses were down 9% to £8,877m, including costs to achieve Transform (CTA) of £494m (2013:
£640m) and litigation and conduct charges of £211m (2013: £126m), reflecting savings associated with prior
Transform initiatives and currency movements
? Statutory profit before tax was £2,501m (2013: £1,677m), reflecting an additional £900m of provisions for PPI redress
(2013: £1,350m) and the non-recurrence of a provision for interest rate hedging products redress compared to the prior
year (2013: £650m)
? Adjusted Group attributable profit was £1,760m (2013: £2,055m). As a result adjusted Group return on average
shareholders’ equity reduced to 6.5% (2013: 7.8%) reflecting the equity raised from the rights issue in Q413 and the
decrease in Core profit before tax partially offset by improvements in BNC
Core performance
? Profit before tax was down 10% to £3,840m, as improved performance across the majority of the Core businesses was
more than offset by a reduction in Investment Bank profit
? Income decreased 7% to £12,674m, reflecting a 18% reduction in the Investment Bank, driven by a decrease in Markets
and a reduction in Africa Banking due to currency movements, partially offset by growth in Barclaycard and PCB. Net
interest income for PCB, Barclaycard and Africa Banking increased 3% to £5,564m reflecting strong savings, mortgage
and card growth
? Credit impairment charges improved 13% to £937m. This reflected lower impairments in PCB as the improving
economic environment had a positive impact on the majority of retail and wholesale portfolios in the UK and lower
impairment in Africa Banking mortgages on a constant currency basis
? Operating expenses decreased £370m to £7,944m, reflecting improvements across each of the businesses as a result of
Transform initiatives and currency movements partially offset by higher CTA charges of £453m (2013: £223m) and
higher litigation and conduct charges of £177m (2013: £86m)
? Core return on equity decreased to 11.0% (2013: 15.1%)
Non-Core performance
? Loss before tax reduced by 27% to £491m. This reflected lower income, following asset disposals and risk reductions, to
£658m (2013: £1,474m), more than offset by a £407m improvement in impairment to £149m and a 36% reduction in
operating expenses to £934m including lower CTA of £41m (2013: £418m)
? Non-Core return on equity dilution improved to 4.5% (2013: 7.3%)
Balance Sheet, Leverage and Capital Management
? Fully loaded CRD IV Common Equity Tier 1 (CET1) ratio increased to 9.9% (2013: 9.1%) mainly driven by RWA
reductions in BNC
? The PRA leverage ratio increased to 3.4% (2013: 3.0%), reflecting a reduction in the PRA leverage exposure of £99bn to
£1,266bn and an increase in eligible PRA adjusted Tier 1 Capital to £43.2bn (2013: £40.5bn) principally from an
exchange of existing T1 instruments into new AT1 securities. The estimated BCBS 270 leverage ratio was 3.4%
? Net tangible asset value per share decreased to 279p (2013: 283p) and net asset value per share decreased to 327p
(2013: 331p) primarily due to an increase in the number of shares in issue and a decrease in currency translation
reserves

Performance Highlights



Barclays PLC – 2014 Interim Results 3



Barclays Group Results
for the six months ended Adjusted


Statutory


30.06.14

30.06.13 YoY 30.06.14 30.06.13 YoY


£m

£m % Change £m £m % Change
Total income net of insurance claims

13,332

15,071 (12) 13,384 15,157 (12)
Credit impairment charges and other
provisions


(1,086)

(1,631) 33 (1,086) (1,631) 33
Net operating income

12,246

13,440 (9) 12,298 13,526 (9)
Operating expenses

(8,172)

(9,015) 9 (8,172) (9,015) 9
Litigation and conduct
1
(211)

(126) (67) (1,111) (2,126) 48
Costs to achieve Transform

(494)

(640) 23 (494) (640) 23
Total operating expenses

(8,877)

(9,781) 9 (9,777) (11,781) 17
Other net expense

(20)

(68) 71 (20) (68) 71
Profit before tax

3,349

3,591 (7) 2,501 1,677 49
Tax charge

(1,109)

(1,124) 1 (895) (594) (51)
Profit after tax

2,240

2,467 (9) 1,606 1,083 48
Non-controlling interests

(390)

(412) 5 (390) (412) 5
Other equity interests
2
(90)

- (90) -
Attributable profit

1,760

2,055 (14) 1,126 671 68





Performance Measures




Return on average tangible shareholders'
equity
2

7.5%

9.1% 4.9% 3.0%
Return on average shareholders' equity
2
6.5%

7.8% 4.2% 2.6%
Cost: income ratio

67%

65% 73% 78%
Compensation: net operating income
ratio


38%

38% 38% 38%
Loan loss rate

45bps

63bps 45bps 63bps
Basic earnings per share
2
10.9p

15.2p 7.0p 5.0p
Dividend per share

2.0p

2.0p 2.0p 2.0p



Balance Sheet and Leverage

30.06.14 31.12.13
Net asset value per share

327p 331p
Net tangible asset value per share

279p 283p
PRA leverage exposure

£1,266bn £1,365bn
Estimated BCBS 270 leverage exposure

£1,353bn n/a



Capital Management


CRD IV fully loaded


Common equity tier 1 ratio
3
9.9% 9.1%
Common equity tier 1 capital

£40.8bn £40.4bn
PRA adjusted tier 1 capital

£43.2bn £40.5bn
Risk weighted assets
3
£411bn £442bn
PRA leverage ratio

3.4% 3.0%
Estimated BCBS 270 leverage ratio

3.4% n/a



Funding and Liquidity


Group liquidity pool

£134bn £127bn
Estimated CRD IV liquidity coverage ratio

107% 96%
Loan: deposit ratio
4
92% 91%



Adjusted Profit Reconciliation

30.06.14 30.06.13
Adjusted profit before tax

3,349 3,591
Own credit



52 86
Provision for PPI redress



(900) (1,350)
Provision for interest rate hedging
products redress




- (650)
Statutory profit before tax

2,501 1,677















1 Litigation and conduct charges include regulatory fines, litigation settlements and conduct related customer redress.
2 The profit after tax attributable to other equity holders of £90m (2013: £nil) is offset by a tax credit recorded in reserves of £19m (2013: £nil). The net
amount of £71m, along with non-controlling interests (NCI) is deducted from profit after tax in order to calculate earnings per share, return on average
tangible shareholders’ equity and return on average shareholders’ equity.
3 Following the full implementation of CRD IV reporting in 2014, the previously reported 31 December 2013 RWAs have been revised by £6.9bn to £442bn
and the fully loaded CET1 ratio revised by (0.2)% to 9.1%. These additional RWAs have been included within Head Office and Other Operations.
4 Loan: deposit ratio for PCB, Barclaycard, Africa Banking and Non-Core retail.

Performance Highlights



Barclays PLC – 2014 Interim Results 4


Barclays Core and Non-Core
Results
for the six months ended



Barclays Core

Barclays Non-Core




30.06.14

30.06.13 % Change 30.06.14 30.06.13 % Change




£m

£m £m £m
Total income net of insurance claims

12,674

13,597 (7) 658 1,474 (55)


Credit impairment charges and other
provisions

(937)

(1,075) 13 (149) (556) 73


Net operating income

11,737

12,522 (6) 509 918 (45)


Operating expenses

(7,314)

(8,005) 9 (860) (1,010) 15


Litigation and conduct

(177)

(86) (33) (39) 15


Costs to achieve Transform

(453)

(223) (41) (418) 90


Total operating expenses

(7,944)

(8,314) 4 (934) (1,467) 36


Other net income/(expense)

47

56 (16) (66) (124) 47


Profit/(loss) before tax

3,840

4,264 (10) (491) (673) 27


Attributable profit/(loss)

2,224

2,675 (17) (464) (619) 25









Performance Measures






Return on average tangible shareholders'
equity
1
13.5%

19.3% (6.0%) (10.2%)
Return on average shareholders' equity
1
11.0%

15.1% (4.5%) (7.3%)
Cost: income ratio

63%

61% 142% 100%
Basic earnings per share contribution

13.8p

19.8p (2.9p) (4.6p)



Capital Management

30.06.14

31.12.13 30.06.14 31.12.13
CRD IV fully loaded


Risk weighted assets

£324bn

£333bn £87bn £110bn
Average allocated tangible equity

£33bn

£29bn £14bn £16bn
Average allocated equity

£41bn

£37bn £14bn £17bn











Income by Business

30.06.14 30.06.13


£m £m % Change


Personal and Corporate Banking

4,361 4,305 1


Barclaycard

2,124 2,019 5


Africa Banking

1,773 2,055 (14)


Investment Bank

4,257 5,222 (18)


Head Office

159 (4)
Barclays Core

12,674 13,597 (7)


Barclays Non-Core

658 1,474 (55)


Barclays Group adjusted total income

13,332 15,071 (12)










Profit/(Loss) Before Tax by Business

30.06.14 30.06.13


£m £m % Change


Personal and Corporate Banking

1,468 1,197 23


Barclaycard

764 616 24


Africa Banking

484 547 (12)


Investment Bank

1,058 1,951 (46)


Head Office

66 (47)
Barclays Core

3,840 4,264 (10)


Barclays Non-Core

(491) (673) 27


Barclays Group adjusted profit before tax

3,349 3,591 (7)








1 Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays
Group returns and Barclays Core returns.

Group Chief Executive Officer’s Review



Barclays PLC – 2014 Interim Results 5


“In our strategy announcement on 8 May, we committed to simplify, focus and rebalance the Group to deliver higher and
more sustainable returns across the cycle, while structurally reducing our cost base and strengthening our capital position.

We are making encouraging progress in executing this plan. Profits before tax in Personal & Corporate Banking and
Barclaycard were up 23% and 24% respectively. Africa Banking also delivered a good performance with profits increasing
13% on a constant currency basis. Performance in the Investment Bank was impacted by the repositioning underway as
well as difficult trading conditions in the quarter, but it is where we expected it to be at this point. The strong performance
of our Banking division is demonstrating the attractiveness of our new origination-led strategy to our clients.

I am pleased with the very good start made in managing down assets in our new non-core unit, with risk-weighted assets
reducing by £22bn in the first half. The return on equity drag has also dropped from 7.3% to 4.5% in the quarter, placing us
well on track to meet our 3% 2016 target.

Structural cost reduction is vital to achieving strong returns, and we continued to make progress on reducing operating
expenses while maintaining controls and improving customer and client experience. Headcount across the Group is now at
the lowest level since 2007 and adjusted operating expenses, including CTA, reduced nearly £1bn reflecting cost reductions
across all businesses in the half.

The Transform strategy we have been pursuing since February 2013 was designed to create a business which can
accommodate external pressures, including the impact of legacy issues, as well as to deliver sustainable performance.
Notwithstanding the additional provision taken for Payment Protection Insurance redress, we continued to build our capital
strength, with the CRD IV CET1 ratio increasing to 9.9% as at 30 June, keeping us on track to achieve our target of
exceeding 11% by 2016. The PRA leverage ratio also increased to 3.4%, as a result of on-going leverage exposure
reductions and a successful liability management exercise in June which resulted in the issuance of £2.3bn of new AT1
securities. The estimated BCBS 270 leverage ratio was 3.4%.

As I reflect on the half, I am pleased with our performance, excited by the potential for the Group, and confident in our
plans to become the ‘Go-To’ bank.”

Antony Jenkins, Group Chief Executive








Group Finance Director’s Review



Barclays PLC – 2014 Interim Results 6


Income Statement
Group performance
? Adjusted profit before tax was down 7% to £3,349m largely driven by currency movements and a reduction in the
Investment Bank profitability, partially offset by improvements in Personal and Corporate Banking (PCB), Barclaycard,
and Barclays Non-Core (BNC)
? Adjusted income decreased 12% to £13,332m whilst impairment reduced by 33% to £1,086m, resulting in a 9%
decrease in net operating income to £12,246m
? Adjusted operating expenses were down 9% to £8,877m, including costs to achieve Transform (CTA) of £494m (2013:
£640m) and litigation and conduct charges of £211m (2013: £126m), reflecting savings associated with prior
Transform initiatives and currency movements
? Statutory profit before tax was £2,501m (2013: £1,677m), reflecting an additional £900m of provisions for PPI redress
(2013: £1,350m) and the non-recurrence of a provision for interest rate hedging products redress compared to the prior
year (2013: £650m)
? The effective tax rate on adjusted profit before tax increased to 33.1% (2013: 31.3%). The effective tax rate on statutory
profit before tax remained constant at 35.8% (2013: 35.4%).
? Adjusted Group attributable profit was £1,760m (2013: £2,055m), resulting in an adjusted Group return on average
shareholders’ equity of 6.5% (2013: 7.8%) reflecting the equity raised from the rights issue in Q413 and the decrease in
Core profit before tax partially offset by improvements in BNC performance
Core Performance
? Profit before tax was down 10% to £3,840m, as improved performance across the majority of the Core businesses was
more than offset by a reduction in Investment Bank profit
? Income decreased 7% to £12,674m, reflecting a 18% reduction in the Investment Bank, driven by a decrease in
Markets, and a reduction in Africa Banking due to currency movements, partially offset by growth in Barclaycard and
PCB
? Net interest income increased 10% to £5,899m driven by strong savings and mortgage growth in PCB, volume
growth in Barclaycard, and lower funding costs, partially offset by a reduction in Africa Banking due to currency
movements
? Investment Bank income was down 18% to £4,257m driven by a 22% decrease in Markets income, partially offset
by a 5% increase in Banking income
? Credit impairment charges improved 13% to £937m. This reflected:
? Lower impairments in PCB as an improving UK economic environment has a positive impact on the majority of retail
and wholesale portfolios in the UK
? Lower impairment in Africa Banking mortgages, on a constant currency basis, driven by improvements mainly in the
South Africa mortgages portfolio
? Stable impairment in Barclaycard as volume growth was largely offset by currency movements
? Releases across a number of counterparties coupled with low level of new charges in Investment Bank
? Operating expenses decreased £370m to £7,944m, reflecting improvements across each of the businesses as a result of
Transform initiatives and currency movements partially offset by higher CTA charges of £453m (2013: £223m) and
higher litigation and conduct charges of £177m (2013: £86m)
? Core return on equity decreased to 11.0% (2013: 15.1%)
Non-Core performance
? Loss before tax reduced by 27% to £491m. This reflected lower income, following asset disposals and risk reductions,
to £658m (2013: £1,474m), more than offset by a £407m improvement in impairment to £149m and a 36% reduction
in operating expenses to £934m including lower CTA of £41m (2013: £418m)
? Non-Core return on equity dilution improved to 4.5% (2013: 7.3%)


Group Finance Director’s Review



Barclays PLC – 2014 Interim Results 7


Balance Sheet and Leverage
Balance Sheet
? Total assets as at 30 June 2014 decreased by 2% to £1,315bn compared to December 2013
? Derivative assets decreased by £17bn primarily due to weakening of USD, tightening of credit spreads, reduced
activity and balance sheet reduction initiatives, offset by a decrease in major forward interest rates
? Reverse repurchase agreements decreased by £15bn primarily driven by lower matched book trading due to a
focus on deleveraging the balance sheet
? Total loans and advances were £486bn (2013: £474bn) with a £13bn increase due to higher settlement balances, £6bn
growth in PCB through UK mortgage lending and £2bn growth in Barclaycard. These were offset by a £7bn reduction in
Non Core assets as lending was managed down
? Customer accounts increased by 3% to £444bn due to an increase in settlement balances
? Total shareholders’ equity including non-controlling interests, was £65bn (2013: £64bn). Excluding non-controlling
interests, shareholders’ equity increased £2.6bn to £58bn, primarily reflecting a £2.3bn increase in other equity
instruments AT1 instruments were issued to investors in exchange for the cancellation of preference shares and
subordinated debt instruments
? Net asset value per share was 327p (2013: 331p) and net tangible asset value per share was 279p (2013: 283p). This
decrease was mainly attributable to the increase in the total number of shares in issue and a £0.9bn decrease in
currency translation reserve as GBP strengthened
Leverage exposure
? The PRA leverage exposure reduced by £99bn to £1,266bn driven by a reduction in potential future exposures (PFEs) on
derivatives, securities financing transactions (SFTs) and currency movements, partially offset by an increase in
settlement balances. The estimated Basel Committee on Banking Supervision (BCBS) leverage exposure was £1,353bn

Capital Management
? Fully loaded CRD IV CET1 ratio increased to 9.9% (2013: 9.1%) primarily due to RWA reductions
? CRD IV RWAs reduced £31bn to £411bn, primarily driven by reductions in BNC of £22bn, reflecting rundown and exit of
securities and reductions in derivatives risk
? Fully loaded CRD IV CET1 capital increased by £0.4bn to £40.8bn as a result of retained earnings generated
? The PRA leverage ratio increased to 3.4% (2013: 3.0%), reflecting a reduction in the PRA leverage exposure of £99bn
and an increase in eligible PRA adjusted Tier 1 Capital to £43.2bn (2013: £40.5bn). Barclays exceeded the minimum of
3% requested by the PRA as at 30 June 2014. From 1 July 2014 the PRA expects Barclays to meet the 3% minimum on a
fully loaded BCBS 270 basis. The estimated BCBS leverage ratio on this basis was 3.4% as at 30 June 2014











Group Finance Director’s Review



Barclays PLC – 2014 Interim Results 8


Funding and Liquidity
? The Group liquidity pool was £134bn (2013: £127bn), remaining within the expected normal operational range, while
maintaining compliance with internal liquidity risk appetite and external regulatory requirements
? The pool consists mainly of cash and deposits with central banks and high quality government bonds
? The estimated Liquidity Coverage Ratio (LCR) was 107% (2013: 96%) based upon the CRD IV rules, as implemented by
the European Banking Authority (EBA). This is equivalent to a surplus of £9bn above the 100% ratio (2013: shortfall of
£6bn). The Group estimated LCR based on the Basel Standards published in January 2013 was 112% (2013: 102%)
? The loan to deposit ratio for PCB, Africa Banking and Barclaycard remained stable at 92% (2013: 91%). The loan to
deposit ratio for the Group was broadly unchanged at 100% (2013: 101%)
? Total wholesale funding outstanding (excluding repurchase agreements) was £179bn (2013: £186bn), of which £86bn
(2013: £82bn) matures in less than one year and £22bn (2013: £20bn) matures within one month
? The Group issued £9bn of term funding net of early redemptions during 2014. Additionally, £6bn of funding was raised
through participation in the Bank of England’s Funding for Lending Scheme. Barclays has £12bn of term funding
maturing in the reminder of 2014 and £24bn in 2015. The Group expects to issue more public wholesale debt in the
reminder of 2014 and 2015, in order to maintain a stable and diverse funding base by type, currency and distribution
channel

Dividends
? A second interim dividend of 1.0p will be paid on 19 September 2014
Outlook
? 2014 will be a transition year as we continue to make investments and focus on balance sheet optimisation and cost
reduction

Tushar Morzaria, Group Finance Director

Condensed Consolidated Financial Statements



Barclays PLC – 2014 Interim Results 9


Condensed Consolidated Income Statement (Unaudited)





Half Year Ended

Half Year Ended Half Year Ended
Continuing Operations



30.06.14

31.12.13 30.06.13


Notes
1
£m

£m £m
Net interest income



6,082

6,023 5,577
Net fee and commission income



4,256

4,335 4,396
Net trading income



2,575

1,979 4,574
Net investment income



356

263 417
Net premiums from insurance contracts



336

345 387
Other income



19

74 74
Total income



13,624

13,019 15,425
Net claims and benefits incurred on insurance contracts



(240)

(241) (268)
Total income net of insurance claims



13,384

12,778 15,157
Credit impairment charges and other provisions



(1,086)

(1,440) (1,631)
Net operating income



12,298

11,338 13,526





Staff costs

2

(5,730)

(5,724) (6,431)
Administration and general expenses

3

(3,147)

(4,467) (3,350)
Operating expenses excluding provisions for PPI and interest rate
hedging products redress




(8,877)

(10,191) (9,781)
Provision for PPI redress

11

(900)

- (1,350)
Provision for interest rate hedging products redress

11

-

- (650)
Operating expenses



(9,777)

(10,191) (11,781)





(Loss)/profit on disposal of undertakings and share of results of




associates and joint ventures



(20)

44 (68)
Profit before tax



2,501

1,191 1,677
Tax

4

(895)

(977) (594)
Profit after tax :



1,606

214 1,083





Attributable to:




Ordinary equity holders of the parent:



1,126

(131) 671
Other equity holders
2


90

- -
Total equity holders of the parent
2


1,216

(131) 671
Non-controlling interests

5

390

345 412
Profit after tax



1,606

214 1,083





Earnings per Share from Continuing Operations






Basic earnings/(loss) per ordinary share
2
6

7.0p

(0.9p) 5.0p
Diluted earnings/(loss) per ordinary share
2
6

7.0p

(0.9p) 4.8p



















1 For notes to the Financial Statements see pages 55 to 88.
2 The profit after tax attributable to other equity holders of £90m (2013: £nil) is offset by a tax credit recorded in reserves of £19m (2013: £nil). The net
amount of £71m, along with NCI, is deducted from profit after tax in order to calculate earnings per share.


Condensed Consolidated Financial Statements



Barclays PLC – 2014 Interim Results 10


Condensed Consolidated Statement of Profit or Loss and other Comprehensive Income
(Unaudited)








Half Year Ended

Half Year Ended Half Year Ended
Continuing Operations

30.06.14

31.12.13 30.06.13
Notes
1
£m

£m £m
Profit after tax

1,606

214 1,083





Other comprehensive loss that may be recycled to profit or loss:




Currency translation reserve 15

(1,056)

(2,278) 511
Available for sale reserve 15

341

(288) (94)
Cash flow hedge reserve 15

254

(753) (1,137)
Other

(53)

(57) 20
Total comprehensive loss that may be recycled to profit or loss


(514)

(3,376) (700)





Other comprehensive gain/(loss) not recycled to profit or loss:




Retirement benefit remeasurements 12

236

(478) (37)





Other comprehensive loss for the period

(278)

(3,854) (737)



Total comprehensive profit/(loss) for the period

1,328

(3,640) 346





Attributable to:




Equity holders of the parent

1,064

(3,638) 232
Non-controlling interests

264

(2) 114
Total comprehensive profit/(loss) for the period

1,328

(3,640) 346








































1 For notes, see pages 55 to 88.


Condensed Consolidated Financial Statements



Barclays PLC – 2014 Interim Results 11


Condensed Consolidated Balance Sheet (Unaudited)




As at

As at
Assets



30.06.14

31.12.13


Notes
1
£m

£m
Cash and balances at central banks



44,047

45,687
Items in the course of collection from other banks



1,746

1,282
Trading portfolio assets



128,812

133,069
Financial assets designated at fair value



39,746

38,968
Derivative financial instruments

8

333,220

350,300
Loans and advances to banks



43,448

39,422
Loans and advances to customers



442,549

434,237
Reverse repurchase agreements and other similar secured lending



171,934

186,779
Available for sale investments



87,224

91,756
Current and deferred tax assets

4

4,461

5,026
Prepayments, accrued income and other assets



5,092

4,415
Investments in associates and joint ventures



704

653
Goodwill



4,829

4,878
Intangible assets



3,049

2,807
Property, plant and equipment



3,983

4,216
Retirement benefit assets

12

55

133
Total assets



1,314,899

1,343,628







Liabilities






Deposits from banks



62,167

55,615
Items in the course of collection due to other banks



1,958

1,359
Customer accounts



443,638

431,998
Repurchase agreements and other similar secured borrowing



173,669

196,748
Trading portfolio liabilities



56,815

53,464
Financial liabilities designated at fair value



62,248

64,796
Derivative financial instruments

8

326,501

347,118
Debt securities in issue



83,832

86,693
Accruals, deferred income and other liabilities



13,128

12,934
Current and deferred tax liabilities

4

1,429

1,415
Subordinated liabilities

10

19,301

21,695
Provisions

11

3,445

3,886
Retirement benefit liabilities

12

1,743

1,958
Total liabilities



1,249,874

1,279,679







Equity






Called up share capital and share premium

13

20,655

19,887
Other reserves

15

(154)

249
Retained earnings



33,241

33,186
Shareholders' equity attributable to ordinary shareholders of parent



53,742

53,322
Other equity instruments

14

4,326

2,063
Total equity excluding non-controlling interests



58,068

55,385
Non-controlling interests

5

6,957

8,564
Total equity



65,025

63,949



























1 For notes, see pages 55 to 88.


Condensed Consolidated Financial Statements



Barclays PLC – 2014 Interim Results 12


Condensed Consolidated Statement of Changes in Equity (Unaudited)
Half Year Ended 30.06.14
Called up Share
Capital and
Share
Premium
1

Other Equity
Instruments
1
Other
Reserves
1
Retained
Earnings

Total
Non-
controlling
Interests
2

Total

Equity
£m

£m

£m

£m

£m £m

£m

Balance at 1 January 2014 19,887

2,063

249

33,186

55,385 8,564

63,949

Profit after tax -

90

-

1,126

1,216 390

1,606

Currency translation movements -

-

(941)

-

(941) (115)

(1,056)

Available for sale investments -

-

345

-

345 (4)

341

Cash flow hedges -

-

260

-

260 (6)

254

Retirement benefit remeasurements -

-

-

237

237 (1)

236

Other -

-

-

(53)

(53) -

(53)

Total comprehensive income for the year -

90

(336)

1,310

1,064 264

1,328

Issue of new ordinary shares 64

-

-

-

64 -

64

Issue of shares under employee share schemes 704

-

-

379

1,083 -

1,083

Issue and exchange of equity instruments -

2,263

-

(155)

2,108 (1,527)

581

Other equity instruments coupons paid -

(90)

-

19

(71) -

(71)

Increase in treasury shares -

-

(842)

-

(842) -

(842)

Vesting of shares under employee share schemes -

-

775

(775)

- -

-

Dividends paid -

-

-

(728)

(728) (334)

(1,062)

Other reserve movements -

-

-

5

5 (10)

(5)

Balance at 30 June 2014 20,655

4,326

(154)

33,241

58,068 6,957

65,025


Half Year Ended 31.12.13
Balance at 1 July 2013 13,988

-

3,233

33,862

51,083 9,054

60,137

(Loss)/profit after tax -

-

-

(131)

(131) 345

214

Currency translation movements -

-

(1,951)

-

(1,951) (327)

(2,278)

Available for sale investments -

-

(283)

-

(283) (5)

(288)

Cash flow hedges -

-

(746)

-

(746) (7)

(753)

Retirement benefit remeasurements -

-

-

(470)

(470) (8)

(478)

Other -

-

-

(57)

(57) -

(57)

Total comprehensive income for the period -

-

(2,980)

(658)

(3,638) (2)

(3,640)

Issue of new ordinary shares 5,870

-

-

-

5,870 -

5,870

Issue of shares under employee share schemes 29

-

-

352

381 -

381

Issue of other equity instruments -

2,063

-

-

2,063 -

2,063

Increase in treasury shares -

-

(17)

-

(17) -

(17)

Vesting of shares under employee share schemes -

-

13

(13)

- -

-

Dividends paid -

-

-

(289)

(289) (490)

(779)

Other reserve movements -

-

-

(68)

(68) 2

(66)

Balance at 31 December 2013 19,887

2,063

249

33,186

55,385 8,564

63,949


Half Year Ended 30.06.13
Balance at 1 January 2013 12,477

-

3,674

34,464

50,615 9,371

59,986

Profit after tax -

-

-

671

671 412

1,083

Currency translation movements -

-

750

-

750 (239)

511

Available for sale investments -

-

(96)

-

(96) 2

(94)

Cash flow hedges -

-

(1,080)

-

(1,080) (57)

(1,137)

Retirement benefit remeasurements -

-

-

(33)

(33) (4)

(37)

Other -

-

-

20

20 -

20

Total comprehensive income for the period -

-

(426)

658

232 114

346

Issue of new ordinary shares 750

-

-

-

750 -

750

Issue of shares under employee share schemes 761

-

-

337

1,098 -

1,098

Increase in treasury shares -

-

(1,049)

-

(1,049) -

(1,049)

Vesting of shares under employee share schemes -

-

1,034

(1,034)

- -

-

Dividends paid -

-

-

(570)

(570) (323)

(893)

Other reserve movements -

-

-

7

7 (108)

(101)

Balance at 30 June 2013 13,988

-

3,233

33,862

51,083 9,054

60,137



















1 Details of Share Capital, Other Equity Instruments and Other Reserves are shown on page 72 to 73.
2 Details of Non-controlling Interests are shown on page 58.

Condensed Consolidated Financial Statements



Barclays PLC – 2014 Interim Results 13


Condensed Consolidated Cash Flow Statement (Unaudited)

Half Year
Ended
Half Year
Ended
Half Year
Ended
Continuing Operations 30.06.14 31.12.13 30.06.13
£m £m £m
Profit before tax 2,501 1,191 1,677
Adjustment for non-cash items 1,760 6,230 351
Changes in operating assets and liabilities (3,082) (42,699) 9,866
Corporate income tax paid (586) (764) (794)
Net cash from operating activities 593 (36,042) 11,100
Net cash from investing activities 7,463 (6,017) (16,628)
Net cash from financing activities (2,202) 7,122 (1,212)
Effect of exchange rates on cash and cash equivalents (1,380) (3,125) 3,323
Net increase/(decrease) in cash and cash equivalents 4,474 (38,062) (3,417)
Cash and cash equivalents at beginning of the period 81,754 119,816 123,233
Cash and cash equivalents at end of the period 86,228 81,754 119,816




















































Results by Business



Barclays PLC – 2014 Interim Results 14


Personal and Corporate Banking








Income Statement Information

Half Year ended

Half Year ended Half Year ended YoY %


30.06.14

31.12.13

30.06.13 Change


£m

£m

£m
Net interest income

3,057

3,033

2,860 7
Net fee and commission income

1,257

1,320

1,403 (10)
Other income

47

65

42 12
Total income

4,361

4,418

4,305 1
Credit impairment charges and other provisions

(230)

(322)

(299) 23
Net operating income

4,131

4,096

4,006 3



Operating expenses

(2,554)

(2,706)

(2,754) 7
Costs to achieve Transform

(115)

(292)

(92) (25)
UK bank levy

-

(66)

- -
Total operating expenses

(2,669)

(3,064)

(2,846) 6



Other net income

6

4

37 (84)
Profit before tax

1,468

1,036

1,197 23
Attributable profit

1,039

800

881 18



Balance Sheet Information and Key Facts


Loans and advances to customers at amortised cost

£216.7bn

£212.2bn

£211.3bn
Total assets

£268.1bn

£278.5bn

£288.3bn
Customer deposits

£298.3bn

£295.9bn

£289.5bn
Risk weighted assets - CRD IV fully loaded

£117.9bn

£118.3bn

n/a
Average allocated tangible equity

£13.0bn

£13.3bn

£13.1bn
Average allocated equity

£17.3bn

£17.5bn

£17.2bn



Average LTV of mortgage portfolio
1
55%

56%

58%
Average LTV of new mortgage lending
1
64%

64%

64%



Number of branches

1,546

1,560

1,577



Performance Measures


Return on average tangible equity

16.1%



12.0%

13.5%
Return on average equity

12.1%



9.1%

10.3%
Cost: income ratio

61%



69%

66%
Loan loss rate (bps)

21



29

28





























































1 Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.

Results by Business



Barclays PLC – 2014 Interim Results 15


Personal and Corporate Banking
Personal and Corporate Banking (PCB) comprises personal banking, mortgages, wealth and investment management and
corporate banking. Through these businesses we serve the needs of our customers and clients in the UK and in selected
international markets. Managing these businesses together will help drive product and customer segment capabilities as
well as cost synergies through platform integration and leveraging expertise, particularly within digital channels.

The number of customers using digital channels continued to grow substantially; mobile banking users almost doubled to
3.0m customers and Pingit users more than doubled to 1.7m. PCB continued to support the UK economy advancing £2.3bn
of net mortgage lending in the first half of the year and advancing £0.9bn of gross term lending to small businesses
1
in
addition to helping close to 60,000 start-ups.

Progress continues to be made on the Transform strategy. During H114, the business incurred £115m (2013: £92m) of
costs to achieve Transform. Operational efficiency has been enhanced through ongoing rationalisation to focus on target
markets and simplify operations, with continued investment in the customer experience across multiple channels.
Income Statement – H114 compared to H113
? Total income increased 1% to £4,361m driven by strong savings and mortgage growth partially offset by lower fees
? Net interest income increased 7% to £3,057m driven by strong savings and mortgage growth. Net interest margin was
up 8bps to 296bps due to lower funding costs and lower customer deposit rates
? Net fee and commission income declined 10% to £1,257m primarily due to lower fees from current account and
insurance products, and corporate banking
? Credit impairment charges reduced £69m to £230m due to the improving economic environment in the UK. Personal
banking benefited from lower write-offs in overdrafts and in home loans. Corporate banking benefited from higher
levels of releases and recoveries in the UK
? Operating expenses reduced 6% to £2,669m reflecting benefits from headcount reduction, partially offset by increased
costs to achieve Transform of £115m (2013: £92m)
? Profit before tax increased 23% to £1,468m
Income Statement – Q214 compared to Q114
? Profit before tax increased 13% to £780m driven by £40m lower impairment due to the improving economic
environment in the UK and higher levels of releases in corporate banking, in addition to £41m lower operating expenses
reflecting benefits from Transform programmes
Balance Sheet – 30 June 2014 compared to 31 December 2013
? Loans and advances to customers increased £4.5bn to £216.7bn due to increases in mortgage balances and UK
corporate loans
? Total assets decreased 4% to £268.1bn primarily driven by a reduction in the Group liquidity pool allocation partly offset
by the increase in loans and advances to customers
? Customer deposits increased £2.4bn to £298.3bn due to increases in UK corporate and personal deposits, partially
offset by net reductions in wealth and investment management deposits primarily driven by reduced institutional cash
deposits
? RWAs reduced to £117.9bn (2013: £118.3bn) driven by changes in risk profile and the treatment of high quality liquidity
assets, partially offset by balance sheet growth










1 Small businesses with a turnover of less than £5m.

Results by Business



Barclays PLC – 2014 Interim Results 16


Barclaycard











Half Year Ended

Half Year Ended

Half Year Ended
Income Statement Information

30.06.14

31.12.13

30.06.13 YoY


£m

£m

£m % Change
Net interest income

1,500

1,444

1,385 8
Net fee and commission income

613

631

625 (2)
Other income

11

9

9 22
Total income

2,124

2,084

2,019 5
Credit impairment charges and other provisions

(537)

(556)

(540) 1
Net operating income

1,587

1,528

1,479 7





Operating expenses

(822)

(912)

(874) 6
Costs to achieve Transform

(36)

(44)

(5)
UK bank levy

-

(22)

- -
Total operating expenses

(858)

(978)

(879) 2



Other net income

35

17

16
Profit before tax

764

567

616 24
Attributable profit

539

383

439 23



Balance Sheet Information and Key Facts


Loans and advances to customers at amortised cost

£33.2bn



£31.5bn

£30.1bn
Total assets

£36.2bn

£34.4bn

£34.3bn
Customer deposits

£5.9bn

£5.1bn

£4.4bn
Risk weighted assets - CRD IV fully loaded

£37.7bn

£35.7bn

n/a
Average allocated tangible equity

£4.6bn

£4.2bn

£4.0bn
Average allocated equity

£5.7bn

£5.4bn

£5.2bn







30 day arrears rates - UK cards

2.4%

2.4%

2.5%
30 day arrears rates - US cards

1.9%

2.1%

2.0%







Performance Measures


Return on average tangible equity

23.6%



18.2%

21.7%
Return on average equity

18.9%



14.3%

16.8%
Cost:income ratio

40%



47%

44%
Loan loss rate (bps)

311



334

342




Results by Business



Barclays PLC – 2014 Interim Results 17


Barclaycard

Barclaycard was largely unchanged by the Group Strategy Update, with the exception of the African Card business moving
to Africa Banking and the UK secured lending portfolio moving to Barclays Non-Core.

Barclaycard continued to grow across all businesses, delivering 5% income growth, with a net increase of 2.3m customers
since June 2013. Innovation remained a key priority, with the launch of the open-market bPay band – a wearable
contactless payment device – and Barclaycard Anywhere, a new mobile point-of-sale solution that makes it easy for
businesses to take card payments securely, anywhere in the UK.

On the journey to become the ‘Go-To’ bank for consumer payments, Barclaycard focuses on providing customers and
clients with simple solutions that offer clear value. The business looks to improve the customer experience through
operational enhancements, improved technical capability and digitalisation.
Income Statement – H114 compared to H113
? Income improved 5% to £2,124m reflecting net lending growth across the business
- UK income, including both the consumer and merchant sides of payments, increased by 8% to £1,368m reflecting
net lending growth and lower funding costs
- International income remained flat at £756m reflecting higher customer asset balances in the US and Germany,
offset by depreciation of USD against GBP
? Net interest income increased by 8% to £1,500m driven by volume growth. Net interest margin remained stable at
9.05% (2013: 9.03%). The impact of promotional offers and a change in product mix, with growth through the US
partner portfolio, were offset by lower funding costs
? Net fees and commission income remained broadly stable at £613m (2013: £625m)
? Credit impairment charges remained flat at £537m (2013: £540m), with the impact of volume growth being offset by a
reduction in impairment rates and depreciation of USD against GBP. Loan loss rates reduced by 31bps to 311bps and 30
day delinquency rates fell in UK and US consumer cards businesses
? Operating expenses reduced 2% to £858m driven by depreciation of USD against GBP, a VAT refund and improved
efficiency, partially offset by costs associated with volume growth and costs to achieve Transform
? Profit before tax improved 24% to £764m
Income Statement – Q214 compared to Q114
? Profit before tax increased 8% to £396m driven by higher volumes
Balance Sheet – 30 June 2014 compared to 31 December 2013
? Total assets increased £1.8bn to £36.2bn driven by the increase in loans and advances to customers across the business
? Customer deposits increased by £0.8bn to £5.9bn due to funding initiatives in the US
? RWAs increased to £37.7bn (2013: £35.7bn) driven by increased customer lending

Results by Business



Barclays PLC – 2014 Interim Results 18


Africa Banking




Constant Currency
1


Half Year
Ended
Half Year
Ended
Half Year
Ended
Half Year
Ended
Half Year
ended
Income Statement Information

30.06.14

31.12.13 30.06.13 YoY 30.06.14 30.06.13 YoY



£m

£m £m % Change £m £m % Change


Net interest income

1,007

1,105 1,140 (12) 1,261 1,140 11


Net fee and commission income

527

633 621 (15) 661 621 6


Net premiums from insurance contracts

167

182 192 (13) 211 192 10


Net trading income

144

114 143 1 181 143 27


Other income

12

40 54 (78) 15 54 (72)


Total income

1,857

2,074 2,150 (14) 2,329 2,150 8


Net claims and benefits incurred under insurance
contracts

(84)

(90) (95) 12 (106) (95) (12)


Total income net of insurance claims

1,773

1,984 2,055 (14) 2,223 2,055 8


Credit impairment charges and other provisions

(196)

(205) (274) 28 (249) (274) 9


Net operating income

1,577

1,779 1,781 (11) 1,974 1,781 11





Operating expenses

(1,082)

(1,221) (1,230) 12 (1,344) (1,230) (9)


Costs to achieve Transform

(17)

(17) (9) (89) (22) (9)
UK bank levy

-

(42) - - - -
Total operating expenses

(1,099)

(1,280) (1,239) 11 (1,366) (1,239) (10)





Other net income

6

3 5 20 8 5 60


Profit before tax

484

502 547 (12) 616 547 13


Attributable profit

181

134 222 (18) 231 222 4








Balance Sheet Information and Key Facts

Half Year
Ended
Half Year
Ended
Half Year
Ended
Half Year
Ended
Half Year
ended
30.06.14

31.12.13 30.06.13 30.06.14 31.12.13


Loans and advances to customers at amortised cost

£33.8bn

£34.9bn £38.7bn £35.3bn £34.9bn
Total assets

£52.4bn

£54.9bn £61.2bn £54.8bn £54.9bn
Customer deposits

£33.2bn

£34.6bn £37.9bn £34.6bn £34.6bn
Risk weighted assets - CRD IV fully loaded

£36.5bn

£38.0bn n/a
Average tangible equity
2
£2.7bn

£2.9bn £3.4bn
Average equity
2
£3.8bn

£4.1bn £4.7bn



Average LTV of mortgage portfolio
3
61.2%

62.3% 63.7%


Average LTV of new mortgage lending
3
75.0%

74.9% 74.1%







Number of distribution points

1,369

1,396 1,433



ZAR/£ - Period end

18.17

17.37 15.11
ZAR/£ - Average

17.82

15.94 14.20



Performance Measures


Return on average tangible equity

13.3%

9.3% 13.0%
Return on average equity

9.6%

6.6% 9.4%
Cost: income ratio

62%

65% 60%
Loan loss rate (bps)

110

107 134


1 Constant currency results are calculated by converting ZAR results into GBP using the average H113 exchange rate for the income statement and the FY13
exchange rate for the balance sheet to eliminate the impact of movement in exchange rates between the two periods.
2 For Africa Banking the equity used for return on average equity is Barclays’ share of the statutory equity of the BAGL entity (together with that of the
Barclays Egypt and Zimbabwe businesses which remain outside the BAGL corporate entity), as well as the Barclays’ goodwill on acquisition of these
businesses. The tangible equity for return on tangible equity uses the same basis but excludes both Barclays’ goodwill on acquisition and the goodwill and
intangibles held within the BAGL statutory equity.
3 Average LTV of mortgage portfolio and new mortgage lending calculated on the balance weighted basis.

Results by Business



Barclays PLC – 2014 Interim Results 19


Africa Banking

The combined Africa Banking business is managed under three primary businesses: Retail and Business Banking (RBB);
Wealth, Investment Management and Insurance (WIMI); Corporate and Investment Banking (CIB) as well as an Africa Head
Office function.
The current focus areas of execution are:
? The RBB turnaround strategy which is gaining early traction and key indicators around client numbers, cheque account
growth, transactional deposits balances and debit card turnover are reflected in a stabilisation in income
? CIB investment across Africa has seen the roll-out of BARX in markets across Africa and strong growth in income
generated outside South Africa
? WIMI growth in net premium income reflects the close collaboration with other business areas and also the expansion
outside South Africa
Africa Banking results showed strong underlying momentum in H114, with constant currency profit before tax increasing
13%. Reported results were adversely affected by currency movements with the average ZAR for H114 compared to H113
depreciating 25% against GBP.
Income Statement – H114 compared to H113
? Total income net of insurance claims declined 14% to £1,773m. On a constant currency basis, total income grew 8%
reflecting balance sheet growth and strong non-interest income growth in the CIB Markets business, in addition to
improved income in RBB despite modest balance sheet growth. WIMI showed modest growth, impacted by higher
weather-related short term claims
? Net interest income decreased 12% to £1,007m. On a constant currency basis, net interest income increased 11%
driven by higher average loans and advances to customers in CIB, growth in RBB customer deposits and an increased
net interest margin following the rise in the South African benchmark interest rate
? Net fee and commission income decreased 15% to £527m. On a constant currency basis, net fee and commission
income increased 6% reflecting strong performance particularly in cards
? Credit impairment charges decreased 28% to £196m. On a constant currency basis, credit impairment charges reduced
9% driven by improvements mainly in the South Africa mortgages portfolio, partially offset by increased provisions in
the cards portfolio. The loan loss rate improved 24bps to 110bps
? Operating expenses decreased 11% to £1,099m. On a constant currency basis, operating expenses increased 10%
largely reflecting increased spend on key initiatives including costs to achieve Transform, in addition to higher staff
costs
? Profit before tax decreased 12% to £484m. On a constant currency basis, profit before tax increased 13%
Income Statement – Q214 compared to Q114
? Profit before tax of £244m (Q114: £240m) is largely in line with stronger performance in CIB
Balance Sheet – 30 June 2014 compared to 31 December 2013
? Loans and advances to customers decreased 3% to £33.8bn. On a constant currency basis, loans and advances
increased 1%
? Total assets decreased by 5% to £52.4bn. On a constant currency basis, total assets were broadly in line
? Customer deposits decreased 4% to £33.2bn. On a constant currency basis, customer deposits remained broadly in line
? RWAs decreased 4% to £36.5bn. On a constant currency basis RWAs decreased 1% driven by lower operational risk

Results by Business



Barclays PLC – 2014 Interim Results 20


Investment Bank









Half Year Ended

Half Year Ended Half Year Ended
Income Statement Information

30.06.14

31.12.13 30.06.13 YoY




£m

£m £m % Change


Net interest income

334

229 164
Net fee and commission income

1,726

1,622 1,610 7


Net trading income

2,137

1,792 3,177 (33)


Net investment income
1
60

(10) 271 (78)


Total income

4,257

3,633 5,222 (18)


Credit impairment releases/(charges) and other
provisions

26

(16) 38 (32)


Net operating income

4,283

3,617 5,260 (19)





Operating expenses

(2,943)

(2,979) (3,193) 8


Costs to achieve Transform

(282)

(74) (116)
UK bank levy

-

(236) - -


Total operating expenses

(3,225)

(3,289) (3,309) 3





Profit before tax

1,058

328 1,951 (46)


Attributable profit

435

209 1,306 (67)





Balance Sheet Information


Trading portfolio assets

£101.2bn

£96.6bn £107.4bn
Derivative financial instrument assets

£104.2bn

£108.7bn £128.4bn
Reverse repurchase agreements and other similar
secured lending

£83.0bn

£78.2bn £93.1bn
Total assets £447.8bn £439.6bn £515.5bn
Risk weighted assets – fully loaded CRD IV

£125.5bn

£126.0bn n/a
Average allocated tangible equity

£14.9bn

£15.0bn £16.0bn
Average allocated equity

£15.6bn

£15.6bn £16.6bn



Performance measures


Return on average tangible equity

5.9%

2.8% 16.3%
Return on average equity

5.7%

2.7% 15.7%
Cost: income ratio

76%

91% 63%



Analysis of Total Income





Investment Banking fees

1,174

1,097 1,063 10
Lending
2
169

110 215 (21)
Banking

1,343

1,207 1,278 5
Credit
3
616

539 718 (14)
Equities

1,220

945 1,352 (10)
Macro
3
1,056

951 1,629 (35)
Markets

2,892

2,435 3,699 (22)
Banking & Markets

4,235

3,642 4,977 (15)
Other
1
22

(9) 245 (91)
Total income

4,257

3,633 5,222 (18)




1 Net investment income and other income includes the £259m gain recognised in Q2 2013 in respect of assets not yet received from the 2008 US Lehman
acquisition.
2 Lending income includes net interest income, fee income and risk management income or losses. H114 net interest and fee income was £268m (2013:
£264m), while risk management losses were £99m (2013: £49m). While net interest and fee income tends to be broadly stable over time, there is volatility
in risk management income or losses.
3 Macro represents Rates, Currencies and Commodities income. Credit represents Credit, Securitised Products and Municipals income.


Results by Business



Barclays PLC – 2014 Interim Results 21


Investment Bank
The Investment Bank now consists of origination led and returns focused markets and banking businesses. Non-strategic
and lower returning businesses have been moved to Barclays Non-Core, and the African Investment Banking business has
been moved to Africa Banking. Investment Bank treasury operations have been moved to be reported where they are now
managed alongside the Group treasury operations within Head Office and Other Operations.
Markets income reduced in H114 compared to H113 due to lower volatility and elevated activity in the prior year. In H114
strong growth was seen in the Banking franchise, which continued to outperform the market
1
with Equity underwriting
having experienced record half-yearly revenues.
The Investment Bank continued to make progress in delivering the Transform strategy, with a focus on driving cost and
capital efficiency, strengthening the control environment, and capitalising on the build out of Equities and Banking. The
business incurred costs to achieve Transform of £282m primarily related to restructuring across Europe, Asia and the
Americas.
Income Statement – H114 compared to H113
? Total income decreased 18% to £4,257m including a 4% reduction due to a fair value adjustment in the prior year of
£259m relating to the 2008 US Lehman acquisition and a 5% reduction due to currency movements. Excluding these
items income decreased 10%
– Investment Banking fee income increased 10% driven by increased financial advisory and record equity underwriting
fees with debt underwriting largely in line with prior year
– Markets income decreased 22%
? Credit decreased 14% to £616m driven by lower client activity amid challenging trading conditions and
tightening credit spreads
? Equities decreased 10% to £1,220m due to declines in the cash equities business reflecting lower client
volumes, partially offset by higher income in equity financing
? Macro decreased 35% to £1,056m reflecting decreased volatility in currency markets and subdued client
activity in rates
– Other income decreased £223m to £22m primarily related to a fair value adjustment in the prior year of £259m as a
result of greater certainty regarding the recoverability of certain assets not yet received from the 2008 US Lehman
acquisition
? Net credit impairment release of £26m (2013: £38m) across a number of counterparties
? Operating expenses decreased 3% to £3,225m due to lower compensation costs, benefits from Transform
programmes, including business restructuring and operational streamlining, and favourable currency movements. This
was partially offset by costs to achieve Transform of £282m (2013: £116m), primarily related to restructuring initiatives
across Europe, Asia and the Americas, and litigation and conduct charges
? Including costs to achieve Transform, the cost: income ratio increased 13% to 76%
? Profit before tax decreased 46% to £1,058m































1 Source: Dealogic daily feed, 1 July 2014.


Results by Business



Barclays PLC – 2014 Interim Results 22


Income Statement – Q214 compared to Q213
? Total income decreased 16% to £2,154m including a 8% reduction due to a fair value adjustment in the prior year of
£259m relating to the 2008 US Lehman acquisition and a 6% reduction due to currency movements. Excluding these
items total income decreased 2%
? Investment Banking fee income increased 35% to £661m driven by increased debt and equity underwriting deal
issuance and financial advisory
? Markets income decreased 16% to £1,403m
? Credit increased 13% to £270m driven by increased income from securitised products
? Equities decreased 16% to £629m due to a decline in client activity in cash equities as Q213 benefitted from
improved global equity markets driven by increased market confidence
? Macro decreased 27% to £504m reflecting lower client activity across rates and currency in Q214
? Operating expenses increased 12% to £1,594m due to costs to achieve Transform, including business restructuring and
operational streamlining, and increased litigation and conduct charges more than offsetting savings from Transform
programmes and favourable currency movements
? Profit before tax decreased 50% to £567m
Balance Sheet – 30 June 2014 compared to 31 December 2013
? Trading portfolio assets increased 5% to £101.2bn due to increased client demand for securitised products within
Credit
? Derivative financial instrument assets decreased 4% to £104.2bn due to the strengthening of GBP against USD and
reduced volumes
? Reverse repurchase agreements increased 6% to £83.0bn in line with mandated limits
? RWAs remained broadly in line at £125.5bn (2013: £126.0bn)


Results by Business



Barclays PLC – 2014 Interim Results 23


Intentionally left blank

Results by Business



Barclays PLC – 2014 Interim Results 24


Head Office and Other Operations



Half year Ended

Half year Ended Half year Ended
Income Statement Information

30.06.14

31.12.13

30.06.13


£m

£m £m
Net interest income/(expense)

1

98 (166)
Net fee and commission expense

(181)

(69) (48)
Net trading income

117

25 146
Net investment income

204

51 17
Net premiums from insurance contracts

9

12 13
Other income

9

29 34
Total income/(expense)

159

146 (4)
Credit impairment releases

-

3 -
Net operating income/(expense)

159

149 (4)



Operating expenses

(91)

(72) (41)
Costs to achieve Transform

(2)

(22) -
UK bank levy

-

(29) -
Total operating expenses

(93)

(123) (41)



Other net (expense)/income

(0)

6 (2)
Profit/(loss) before tax

66

32 (47)
Attributable profit/(loss)

30

84 (173)




Balance Sheet Information


Total assets

£41.7bn

£25.0bn £45.6bn
Risk weighted assets – fully loaded CRD IV
1
£6.0bn

£14.6bn n/a
Average allocated tangible equity
2
£(2.1bn)

£(6.4bn) £(8.7bn)
Average allocated equity
2
£(1.8bn)

£(6.0bn) £(8.3bn)






















1 Following the full implementation of CRD IV reporting in 2014, the previously reported 31 December 2013 RWAs have been revised by £6.9bn to £14.6bn.
2 Average allocated tangible equity and equity for the Head Office and Other Operations include risk weighted assets and capital deductions in Head Office
and Other Operations, plus the residual balance of average ordinary shareholders’ equity and tangible ordinary shareholders’ equity caused by allocating
equity at the target 10.5% of average risk weighted assets as opposed to the lower actual Core Tier 1 ratio of between 9.1 and 9.9% during H114.

Results by Business



Barclays PLC – 2014 Interim Results 25


Head Office and Other Operations
Head Office and Other Operations now include treasury operations previously reported in the Investment Bank, while the
Africa Head Office function has been transferred to Africa Banking

Income Statement – H114 compared to H113
? Total income increased to £159m (2013: expense of £4m) predominantly driven by a net gain of £69m from foreign
exchange recycling arising from the restructure of group subsidiaries
? Operating expenses increased £52m to £93m, mainly due to litigation and conduct charges
? Profit before tax of £66m moved from a loss of £47m in 2013
Income Statement – Q214 compared to Q114
? Profit before tax of £6m (Q114: £60m) due to operating expenses increasing £49m to £71m, mainly due to litigation
and conduct charges
Balance Sheet – 30 June 2014 compared to 31 December 2013
? Total assets increased to £41.7bn (2013: £25.0bn) primarily reflecting an increase in surplus Group liquidity pool assets
? RWAs decreased to £6.0bn (2013: £14.6bn). Excluding the impact of the £6.9bn comparative revisions, the decrease
was primarily driven by changes in the treatment of high quality liquidity assets.

Results by Business



Barclays PLC – 2014 Interim Results 26


Barclays Non-Core













Half Year
Ended
Half Year
Ended
Half Year
Ended
Income Statement Information

30.06.14

31.12.13

30.06.13 YoY




£m

£m

£m % Change


Net interest income

183

113

194 (6)


Net fee and commission income

314

198

185 70


Net trading income

116

327

1,000 (88)


Net premiums from insurance contracts

147

140

166 (11)


Other income

53

192

101 (48)


Total income

813

970

1,646 (51)


Net claims and benefits incurred under insurance
contracts

(155)

(152)

(172) 10


Total income net of insurance claims

658

818

1,474 (55)


Credit impairment charges and other provisions

(149)

(344)

(556) 73


Net operating income

509

474

918 (45)





Operating expenses

(893)

(1,149)

(1,049) 15


Costs to achieve Transform

(41)

(120)

(418) 90


UK bank levy

-

(109)

-
Total operating expenses

(934)

(1,378)

(1,467) 36





Other net (expense)/income

(66)

14

(124) 47


Loss before tax

(491)

(890)

(673) 27


Attributable loss

(464)

(1,271)

(619) 25





Balance Sheet Information


Loans and advances to banks and customers at
amortised cost

£75.5bn

£81.9bn

£95.9bn
Loans and advances to customers at fair value

£17.0bn

£17.6bn

£18.6bn
Trading portfolio assets

£22.9bn

£30.7bn

£41.5bn
Derivative financial instrument assets

£227.0bn

£239.3bn

£301.9bn
Reverse repurchase agreements and other similar
secured lending

£86.8bn

£104.7bn

£123.6bn
Total assets £468.6bn £511.2bn £623.0bn
Customer deposits

£28.6bn

£29.3bn

£34.2bn
Risk weighted assets - CRD IV fully loaded

£87.5bn

£109.9bn

n/a
Average allocated tangible equity

£14.2bn

£16.3bn

£17.2bn
Average allocated equity

£14.5bn

£16.5bn

£17.5bn



Performance Measures


Return on average tangible equity
1
(6.0%)



(9.6%)

(10.2%)
Return on average equity
1
(4.5%)



(7.5%)

(7.3%)
Cost: income ratio

142%



168%

99%
Loan loss rate (bps)

45



81

114




Analysis of Total Income


Businesses

564

662 822 (31)
Securities and Loans

147

171 570 (74)
Derivatives

(53)

(15) 82
Total Income

658

818 1,474 (55)

















1 Return on average equity and average tangible equity for Barclays Non-Core represents its impact on the Group, being the difference between Barclays
Group returns and Barclays Core returns.

Results by Business



Barclays PLC – 2014 Interim Results 27


Barclays Non-Core
Barclays Non Core (BNC) groups together businesses and assets that are no longer strategically attractive to Barclays and
are being managed under three broad categories:
? Businesses, including all of Europe Retail
? Securities and Loans, incorporating Investment Bank portfolio assets and the UK corporate long term fair value loan
portfolio
? Derivatives, including the pre-CRD IV Rates portfolio
These businesses and assets will be exited over time with actions already undertaken during H114.
Income Statement – H114 compared to H113
? Total income net of insurance claims decreased 55% to £658m
? Businesses income decreased 31% to £564m due to exit from non strategic principal businesses and reduced
European retail income
? Securities and Loans decreased 74% to £147m primarily driven by active rundown of securities, fair value
adjustments on wholesale loan portfolios and favourable market movements for certain securitised products in
2013
? Derivatives income reduced £135m to an expense of £53m reflecting reduced income from the pre-CRD IV Rates
portfolio and hedging activities
? Credit impairment charges improved by £407m to £149m primarily driven by a prior year charge against a single name
exposure, better credit performance in retail and lower charges on the wholesale portfolio, reflecting actions to reduce
exposures to the Spanish property and construction sectors
? Operating expenses decreased 36% to £934m reflecting
? Benefits from Transform programmes, including reduction in compensation costs, Europe retail employees and
distribution points
? Cost to achieve Transform reduced by £377m to £41m reflecting the significant restructuring in Europe retail in
H113
? Other net expense reduced £58m to £66m due to a lower valuation adjustment recognised in Q2 in respect of
contractual obligations to trading partners, based in locations affected by the Group Strategy Update
? Loss before tax decreased £182m to £491m
Income Statement – Q214 compared to Q114
? Loss before tax increased £183m to £337m reflecting exits from non-strategic principal businesses and rundown of
securities, coupled with a valuation adjustment recognised in respect of contractual obligations to trading partners
Balance Sheet – 30 June 2014 compared to 31 December 2013
? Loans and advances to banks and customers at amortised cost reduced 8% to £75.5bn driven by asset reduction
activity as part of the Transform strategy and currency movements
? Trading portfolio assets decreased 25% to £22.9bn due to exiting of positions
? Derivative financial instrument assets decreased 5% to £227.0bn due to balance sheet reduction initiatives, including
trade maturities
? Reverse repurchase agreements and other similar lending decreased 17% to £86.8bn predominately driven by lower
matched book trading due a focus on deleveraging the balance sheet
? Customer deposits reduced 2% to £28.6bn due to currency movements and reduced customer balances
? RWAs reduced 20% to £87.5bn reflecting rundown and exit of securities and reductions in derivative risk



Barclays Results by Quarter



Barclays PLC – 2014 Interim Results 28


Barclays Group Results by Quarter

Q214

Q114 Q413 Q313 Q213 Q113 Q412 Q312


£m

£m £m £m £m £m £m £m
Adjusted basis


Total income net of insurance claims

6,682

6,650 6,639 6,445 7,337 7,734 6,867 7,002
Credit impairment charges and other provisions

(538)

(548) (718) (722) (925) (706) (825) (805)
Net operating income

6,144

6,102 5,921 5,723 6,412 7,028 6,042 6,197
Operating expenses

(4,188)

(4,195) (4,777) (4,262) (4,359) (4,782) (4,345) (4,353)
Costs to achieve Transform

(254)

(240) (468) (101) (126) (514) - -
UK bank levy

-

- (504) - - - (345) -
Total operating expenses

(4,442)

(4,435) (5,749) (4,363) (4,485) (5,296) (4,690) (4,353)
Other net (expense)/income

(46)

26 19 25 (122) 54 43 21
Adjusted profit before tax

1,656

1,693 191 1,385 1,805 1,786 1,395 1,865



Adjusting items




Own credit

(67)

119 (95) (211) 337 (251) (560) (1,074)
Provision for PPI redress

(900)

- - - (1,350) - (600) (700)
Provision for interest rate hedging products
redress


-

- - - (650) - (400) -
Goodwill impairment

-

- (79) - - - - -
Statutory profit/(loss) before tax

689

1,812 17 1,174 142 1,535 (165) 91
Statutory profit/(loss) after tax

391

1,215 (514) 728 39 1,044 (364) (13)





Attributable to:


Ordinary equity holders of the parent

161

965 (642) 511 (168) 839 (589) (183)
Other equity holders

41

49 - - - - - -
Non-controlling interests

189

201 128 217 207 205 225 170



Adjusted basic earnings/(loss) per share

5.4p

5.5p (2.8p) 5.4p 7.7p 7.5p 6.7p 7.8p
Adjusted cost: income ratio

66%

67% 87% 68% 61% 68% 68% 62%
Basic earnings per share

1.0p

6.0p (4.5p) 3.8p (1.2p) 6.3p (4.5p) (1.4p)
Cost: income ratio

82%

66% 89% 70% 85% 71% 90% 85%





Barclays Core


Total income net of insurance claims

6,397

6,277 6,189 6,076 6,773 6,824 6,115 6,278
Credit impairment charges and other provisions

(456)

(481) (542) (554) (558) (517) (600) (628)
Net operating income

5,941

5,796 5,647 5,522 6,215 6,307 5,515 5,650
Operating expenses

(3,738)

(3,753) (4,114) (3,776) (3,853) (4,239) (3,844) (3,906)
Costs to achieve Transform

(237)

(216) (365) (84) (64) (158) - -
UK bank levy

-

- (395) - - - (263) -
Total operating expenses

(3,975)

(3,969) (4,874) (3,860) (3,917) (4,397) (4,107) (3,906)
Other net income

27

20 15 15 13 43 21 12
Profit before tax

1,993

1,847 788 1,677 2,311 1,953 1,429 1,756





Barclays Non-Core





Total income net of insurance claims

285

373 450 368 564 911 752 724
Credit impairment charges and other provisions

(82)

(67) (176) (168) (367) (189) (226) (177)
Net operating income


203

306 274 200 197 722 526 547
Operating expenses


(451)

(442) (664) (485) (507) (542) (500) (447)
Costs to achieve Transform

(17)

(24) (103) (17) (62) (356) - -
UK bank levy


-

- (109) - - - (82) -
Total operating expenses

(468)

(466) (876) (502) (569) (898) (582) (447)
Other net (expense)/income

(72)

6 4 10 (135) 11 21 9
(Loss)/profit before tax

(337)

(154) (598) (292) (507) (165) (35) 109







Business Results by Quarter



Barclays PLC – 2014 Interim Results 29




Q214

Q114 Q413 Q313 Q213 Q113 Q412 Q312
Personal and Corporate Banking

£m

£m £m £m £m £m £m £m
Total income net of insurance claims

2,188

2,173 2,166 2,252 2,192 2,113 2,153 2,151
Credit impairment charges and other provisions

(95)

(135) (169) (153) (165) (134) (191) (152)
Net operating income

2,093

2,038 1,997 2,099 2,027 1,979 1,962 1,999
Operating expenses

(1,256)

(1,298) (1,388) (1,318) (1,378) (1,376) (1,337) (1,356)
Costs to achieve Transform

(58)

(57) (219) (73) (55) (37) - -
UK bank levy

-

- (66) - - - (49) -
Total operating expenses

(1,314)

(1,355) (1,673) (1,391) (1,433) (1,413) (1,386) (1,356)
Other net income

1

5 3 1 7 30 3 7
Profit before tax

780

688 327 709 601 596 579 650



Barclaycard


Total income net of insurance claims

1,082

1,042 1,034 1,050 1,030 989 987 956
Credit impairment charges and other provisions

(268)

(269) (266) (290) (272) (268) (265) (259)
Net operating income

814

773 768 760 758 721 722 697
Operating expenses

(420)

(402) (457) (455) (424) (450) (472) (401)
Costs to achieve Transform

(23)

(13) (38) (6) (5) - - -
UK bank levy

-

- (22) - - - (15) -
Total operating expenses

(443)

(415) (517) (461) (429) (450) (487) (401)
Other net income

25

10 5 12 7 9 5 7
Profit before tax

396

368 256 311 336 280 240 303

Africa Banking


Total income net of insurance claims

895

878 980 1,004 1,016 1,039 1,064 1,043
Credit impairment charges and other provisions

(100)

(96) (104) (101) (131) (143) (164) (192)
Net operating income

795

782 876 903 885 896 900 851
Operating expenses

(545)

(537) (616) (605) (597) (633) (605) (660)
Costs to achieve Transform

(8)

(9) (15) (2) (9) - - -
UK bank levy

-

- (42) - - - (34) -
Total operating expenses

(553)

(546) (673) (607) (606) (633) (639) (660)
Other net income

2

4 - 3 4 1 12 3
Profit before tax

244

240 203 299 283 264 273 194



Investment Bank


Investment Banking fees

661

513 571 526 488 575 621 461
Lending

66

103 68 42 141 74 42 (38)
Banking

727

616 639 568 629 649 663 423
Credit

270

346 231 308 239 479 248 356
Equities

629

591 421 524 750 602 419 490
Macro

504

552 494 457 689 940 609 841
Markets

1,403

1,489 1,146 1,289 1,678 2,021 1,276 1,687
Banking & Markets

2,130

2,105 1,785 1,857 2,307 2,670 1,939 2,110
Other

24

(2) (3) (6) 252 (7) (8) (8)
Total income

2,154

2,103 1,782 1,851 2,559 2,663 1,931 2,102
Credit impairment releases/(charges) and other
provisions


7

19 (6) (10) 10 28 21 (24)
Net operating income

2,161

2,122 1,776 1,841 2,569 2,691 1,952 2,078
Operating expenses

(1,442)

(1,501) (1,606) (1,373) (1,429) (1,764) (1,360) (1,489)
Costs to achieve Transform

(152)

(130) (71) (3) - (116) - -
UK bank levy

-

- (236) - - - (139) -
Total operating expenses

(1,594)

(1,631) (1,913) (1,376) (1,429) (1,880) (1,499) (1,489)
Profit/(loss) before tax

567

491 (137) 465 1,140 811 453 589


Head Office




Total income/(expense) net of insurance claims

78

81 227 (81) (24) 20 (20) 26
Credit impairment releases/(charges) and other
provisions


-

- 3 - - - (1) (1)
Net operating income/(expense)

78

81 230 (81) (24) 20 (21) 25
Operating expenses

(76)

(15) (47) (25) (25) (16) (70) -
Costs to achieve Transform

5

(7) (22) - 5 (5) - -
UK bank levy

-

- (29) - - - (26) -
Total operating expenses

(71)

(22) (98) (25) (20) (21) (96) -
Other net (expense)/income

(1)

1 7 (1) (5) 3 1 (5)
Profit/(loss) before tax

6

60 139 (107) (49) 2 (116) 20

Performance Management



Barclays PLC – 2014 Interim Results 30


Returns and Equity by Business
Returns on average equity and average tangible equity are calculated as profit for the period attributable to ordinary equity
holders of the parent (adjusted for the offset by the tax credit recorded in reserves in respect of coupons on other equity
instruments) divided by average allocated equity or average allocated tangible equity for the period as appropriate,
excluding non-controlling and other equity interests for businesses, apart from Africa Banking (see below). Average
allocated equity has been calculated as 10.5% of average CRD IV fully loaded risk weighted assets for each business,
adjusted for CRD IV fully loaded capital deductions, including goodwill and intangible assets, reflecting the assumptions the
Group uses for capital planning purposes. The excess of the equity so allocated over the Group equity, reflecting CRD IV
fully loaded Common Equity Tier 1 capital ratio of 9.9% as at 30 June 2014 being below 10.5%, is allocated as negative
equity to Head Office and Other Operations. Average allocated tangible equity is calculated using the same method but
excludes goodwill and intangible assets.

For Africa Banking the equity used for return on average equity is Barclays share of the statutory equity of the BAGL entity
(together with that of the Barclays Egypt and Zimbabwe businesses which remain outside the BAGL corporate entity), as
well as the Barclays’ goodwill on acquisition of these businesses. The tangible equity for return on tangible equity uses the
same basis but excludes both the Barclays’ goodwill on acquisition and the goodwill and intangibles held within the BAGL
statutory equity.





Half year ended

Half year ended Half year ended




30.06.14

31.12.13 30.06.13


Return on Average Equity

%

% %


Personal and Corporate Banking

12.1%

9.1% 10.3%


Barclaycard

18.9%

14.3% 16.8%


Africa Banking

9.6%

6.6% 9.4%


Investment Bank

5.7%

2.7% 15.7%


Barclays Core excluding Head Office

10.4%

7.2% 13.0%


Head Office impact
1
0.6%

1.6% 2.1%


Barclays Core

11.0%

8.8% 15.1%


Barclays Non-Core impact
1
(4.5%)

(7.5%) (7.3%)


Barclays Group adjusted total

6.5%

1.3% 7.8%









Half year ended

Half year ended Half year ended




30.06.14

31.12.13 30.06.13


Return on Average Tangible Equity

%

% %


Personal and Corporate Banking

16.1%

12.0% 13.5%


Barclaycard

23.6%

18.2% 21.7%


Africa Banking

13.3%

9.3% 13.0%


Investment Bank

5.9%

2.8% 16.3%


Barclays Core excluding Head Office

12.5%

8.6% 15.6%


Head Office impact
1
1.0%

2.5% 3.7%


Barclays Core

13.5%

11.1% 19.3%


Barclays Non-Core impact
1
(6.0%)

(9.6%) (10.2%)


Barclays Group adjusted total

7.5%

1.5% 9.1%





























1 Return on average equity and average tangible equity for Head Office and Barclays Non-Core represents their impact on Barclays Core and the Group
respectively.


Performance Management



Barclays PLC – 2014 Interim Results 31








Half year ended

Half year ended Half year ended




30.06.14

31.12.13 30.06.13


Profit/(Loss) Attributable to Ordinary
Equity Holders of the Parent
1
£m

£m £m


Personal and Corporate Banking

1,044

800 881


Barclaycard

540

383 439


Africa Banking

181

134 222


Investment Bank

441

209 1,306


Head Office

31

84 (173)


Barclays Core

2,237

1,610 2,675


Barclays Non-Core

(458)

(1,271) (619)


Barclays Group adjusted total

1,779

339 2,056









Average Equity



Half year ended

Half year ended Half year ended




30.06.14

31.12.13 30.06.13




£bn

£bn £bn


Personal and Corporate Banking

17.3

17.5 17.2


Barclaycard

5.7

5.4 5.2


Africa Banking

3.8

4.1 4.7


Investment Bank

15.6

15.6 16.6


Head Office
2
(1.8)

(6.0) (8.3)


Barclays Core

40.6

36.6 35.4


Barclays Non-Core

14.5

16.5 17.5


Barclays Group total

55.1

53.1 52.9









Average Tangible Equity



Half year ended

Half year ended Half year ended




30.06.14

31.12.13 30.06.13




£bn

£bn £bn


Personal and Corporate Banking

13.0

13.3 13.1


Barclaycard

4.6

4.2 4.0


Africa Banking

2.7

2.9 3.4


Investment Bank

14.9

15.0 16.0


Head Office
2
(2.1)

(6.4) (8.7)


Barclays Core

33.1

29.0 27.8


Barclays Non-Core

14.2

16.3 17.2


Barclays Group total

47.3

45.3 45.0


























1 The profit after tax attributable to other equity holders of £90m (2013: £nil) is offset by a tax credit recorded in reserves of £19m (2013: £nil) allocated
across the businesses. The net amount of £71m, along with NCI, is deducted from profit after tax in order to calculate return on average tangible
shareholders’ equity and return on average shareholders’ equity. Hence, H114 attributable profit of £1,760m has been adjusted for the tax credit recorded
in reserves of £19m (2013: £nil).
2 Includes risk weighted assets and capital deductions in Head Office and Other Operations, plus the residual balance of average ordinary shareholders’
equity and tangible ordinary shareholders’ equity.

Performance Management



Barclays PLC – 2014 Interim Results 32



Margins and Balances
1
 

     
 
        
 
 
  Half Year Ended 30.06.14
 
Half Year Ended 30.06.13

Net Interest
Income

Average
customer
assets
Net interest
margin

Net Interest
Income
Average
customer
assets
Net interest
margin
£m

£m %

£m £m %
Personal and Corporate Banking

3,057

208,160 2.96

2,860 200,104 2.88
Barclaycard

1,500

33,410 9.05

1,385 30,932 9.03
Africa Banking

1,007

34,574 5.87

1,140 40,489 5.68
Total Personal and Corporate Banking,
Barclaycard and Africa Banking

5,564

276,144 4.06

5,385 271,525 4.00
Investment Bank

334



164
Head Office and Other Operations

1



(166)
Core

5,899



5,383
Non-Core

183



194
Total Net Interest Income

6,082



5,577

? Total PCB, Barclaycard and Africa Banking NII increased 3% to £5,564m due to:
- An increase in average customer assets to £276.1bn (2013: £271.5bn) with growth in PCB mortgage and savings
and Barclaycard, partially offset by reductions in Africa Banking as the ZAR depreciated against GBP
- Net interest margin increased 6bps to 4.06% primarily due to lower customer deposit rates in PCB and lower
funding costs
? Group NII increased to £6.1bn (2013: £5.6bn) including structured hedge contributions of £0.8bn (2013: £0.8bn).
Equity structural hedge income increased as the weighted average life of the hedge was expanded. This was offset by
lower product structural hedges driven by the maintenance of the hedge in a continuing low rate environment
? Net interest margin reflects movements in the Group’s internal funding rates which are based on the cost to the Group
of alternative funding in wholesale markets. The internal funding rate prices intra-group funding and liquidity to
appropriately give credit to businesses with net surplus liquidity and to charge those businesses in need of alternative
funding at a rate that is driven by prevailing market rates and includes a term premium.





Quarterly analysis for PCB, Barclaycard and Africa Banking:            
   Quarter Ended 30.06.14 Quarter Ended 31.03.14

Net Interest
Income
Average
customer
assets
Net interest
margin
Net Interest
Income
Average
customer
assets
Net interest
margin
£m £m % £m £m %
Personal and Corporate Banking
1,529 209,040 2.93 1,528 207,433 2.99
Barclaycard
754 33,904 8.92 746 32,911 9.19
Africa Banking
504 34,660 5.83 503 34,488 5.91
Total Personal and Corporate Banking,
Barclaycard and Africa Banking
2,787 277,604 4.03 2,777 274,832 4.10

















































1 Margins are calculated as net interest income over average customer assets.

Risk Management



Barclays PLC – 2014 Interim Results 33


Risk Management and Principal Risks
Barclays risk management responsibilities are laid out in the Enterprise Risk Management Framework (ERMF), which
creates clear ownership and accountability, with the purpose that the Group’s most significant risk exposures are
understood and managed in accordance with agreed risk appetite, and that there is regular reporting of both risk exposures
and the operating effectiveness of controls. It includes those risks incurred by Barclays that are foreseeable, continuous, and
material enough to merit establishing specific bank-wide control frameworks. These are known as Key Risks and are
grouped into six Principal Risks.
Further detail on these risks and how they are managed is available from the 2013 Annual Report and Accounts or online at
www.barclays.com/investorrelations. There has been no significant change to the Key Risks, risk management or principal
uncertainties during the period or expected for the remaining six months of the financial year.
The following section gives an overview of the performance in Funding Risk – Liquidity, Funding Risk – Capital, Credit Risk
and Market Risk for the period.
Funding & Liquidity
Barclays has a comprehensive Liquidity Risk Management Framework (the Liquidity Framework) for managing the Group’s
liquidity risk.
Liquidity risk is managed separately at Barclays Africa Group Limited (BAGL) due to local currency and funding
requirements. Unless stated otherwise, all disclosures in this section exclude BAGL and they are reported on a stand-alone
basis. Adjusting for local requirements, BAGL liquidity risk is managed on a consistent basis to Barclays Group.
Liquidity stress testing
Under the Liquidity Framework, the Group has established a Liquidity Risk Appetite (LRA), which is measured with
reference to the liquidity pool compared to anticipated stressed net contractual and contingent outflows under a variety of
stress scenarios. These scenarios cover a market-wide stress event, a Barclays-specific stress event and a combination of
the two. Under normal market conditions, the liquidity pool is managed to be at least 100% of 90 days of anticipated
outflows for a market-wide stress and 30 days of anticipated outflows for each of the Barclays-specific and combined
stresses. Of these, the 30 day Barclays-specific scenario requires the largest liquidity pool to meet its stress outflows.
Since June 2010 the Group has reported its liquidity position against Individual Liquidity Guidance (ILG) provided by the
PRA. The Group also monitors its position against anticipated CRD IV and Basel 3 metrics, including the Liquidity Coverage
Ratio (LCR) and the Net Stable Funding Ratio (NSFR)
1
.
As at 30 June 2014 the Group estimated its LCR at 107% (2013: 96%) based upon the CRD IV rules, as implemented by
EBA. This is equivalent to a surplus of £9bn (2013: shortfall of £6bn). The Group estimated its LCR at 112% (2013: 102%)
based on the Basel standards published in January 2013
As at 30 June 2014, the Group held eligible liquid assets in excess of 100% of net stress outflows for both the 30 day
Barclays-specific LRA scenario and the CRD IV LCR as implemented by the EBA:

Compliance with internal and regulatory stress tests
Barclays' LRA
(30 day Barclays
specific
requirement)
2

Estimated CRD IV
LCR
1

£bn

£bn


Eligible liquidity buffer 134

141


Net stress outflows 125

132


Surplus 9

9



Liquidity pool as a percentage of anticipated net outflows as at 30 June 2014 107%

107%


Liquidity pool as a percentage of anticipated net outflows as at 31 December 2013 104%

96%










1 The methodology for estimating the LCR and NSFR is based on an interpretation of the CRD IV and Basel III standards respectively and includes a number
of assumptions which are subject to change prior to the finalisation of CRD IV rules on these metrics. The estimated LCR and NSFR in this section include
BAGL.
2 Of the three stress scenarios monitored as part of the LRA, the 30 day Barclays specific scenario results in the lowest ratio at 107% (2013: 104%). This
compares to 128% (2013: 127%) under the 90 day market-wide scenario and 114% (2013: 112%) under the 30 day combined scenario.

Funding Risk - Liquidity



Barclays PLC – 2014 Interim Results 34


The LRA and LCR surpluses were within the expected normal operating range, while maintaining compliance with internal
liquidity risk appetite and external regulatory requirements. This includes maintaining an LCR of at least 100% based upon
the CRD IV rule ahead of the regulatory requirement.
Barclays estimated its NSFR at 98% (2013: 95%) based on its current interpretation of the January 2014 BCBS consultation.
This includes the requirement for 50% required stable funding against short-term reverse repos from non-banks. Without
this requirement, which did not exist in 2010 original Basel proposal, the NSFR would have been 113%. Further changes to
the rules are expected prior to the Basel Committee’s finalisation of the rules and implementation by local regulators ahead
of the target 2018 compliance date.
Barclays plans to maintain its surplus to the internal and regulatory stress requirements at an efficient level. Barclays will
continue to monitor the money markets closely, in particular for early indications of the tightening of available funding. In
these conditions, the nature and severity of the stress scenarios are reassessed and appropriate action taken with respect to
the liquidity pool. This may include further increasing the size of the pool or monetising the pool to meet stress outflows.
Liquidity pool
The Group liquidity pool was £134bn (2013: £127bn). During 2014, the month-end liquidity pool ranged from £134bn to
£156bn (2013: £127bn to £157bn), and the month-end average balance was £145bn (2013: £144bn). The liquidity pool is
held unencumbered and is not used to support payment or clearing requirements.

Composition of the Group Liquidity Pool















Liquidity
Pool
30.06.2014
Liquidity
pool of
which PRA
eligible
1

Liquidity pool of which
CRD IV LCR-eligible
2
Liquidity
Pool
31.12.2013





Level 1

Level 2A



As at 30.06.2014



£bn £bn

£bn

£bn

£bn

Cash and deposits with central banks
3


42 41

40

-

43









Government bonds
4










AAA rated



58 57

58

-

52

AA+ to AA- rated



11 10

11

-

9

Other government bonds



1 -

1

-

1

Total Government bonds



70 67

70

-

62













Other







Supranational bonds and multilateral development banks



6 3

6

-

3

Agencies and agency mortgage-backed securities 8 -

5

3

10

Covered bonds (rated AA- and above)



5 -

-

5

6

Other



3 -

-

-

3

Total other



22 3

11

8

22













Total as at 30 June 2014



134 111

121

8


Total as at 31 December 2013



127 104

109

11


Barclays manages the liquidity pool on a centralised basis. As at 30 June 2014, 92% (2013: 90%) of the liquidity pool was
located in Barclays Bank PLC and was available to meet liquidity needs across the Barclays Group. The residual liquidity pool
is held predominantly within Barclays Capital Inc (BCI). The portion of the liquidity pool outside of Barclays Bank PLC is held
against entity-specific stressed outflows and regulatory requirements.










1 £111bn (2013: £104bn) of the liquidity pool is PRA eligible as per BIPRU 12.7. In addition, there are £10bn (2013: £9bn) of Level 2 assets available, as per
PRA’s announcement in August 2013 that certain assets specified by PRA as Level 2 assets can be used on a transitional basis.
2 The LCR-eligible assets presented in this table represent only those assets which are also eligible for the Group liquidity pool and do not include any Level
2B assets as defined by the Basel Committee on Banking Supervision.
3 Of which over 95% (2013: over 95%) was placed with the Bank of England, US Federal Reserve, European Central Bank, Bank of Japan and Swiss National
Bank.
4 Of which over 85% (2013: over 85%) are comprised of UK, US, Japanese, French, German, Danish, Swiss and Dutch securities.

Funding Risk - Liquidity



Barclays PLC – 2014 Interim Results 35




Deposit Funding As at 30.06.2014

As at 31.12.13
Funding of Loans and Advances to Customers
(including BAGL)


Loans and
Advances to
Customers

Customer
Deposits


Loan to Deposit
Ratio


Loan to Deposit
Ratio


£bn

£bn

%

%
Personal and Corporate banking

217

298


Barclaycard

33

6


Non-Core (retail)

39

16


Africa Banking

34

33


Total Retail funding

323

353

92

91



Investment Bank, Non-Core (wholesale) and Other
1
120

91
Total

443

444

100

101
PCB, Africa Banking, Barclaycard and Non-Core (retail) are largely funded by customer deposits. The loan to deposit ratio
for these businesses was 92% (2013: 91%). The customer deposits in excess of loans and advances are primarily used to
fund liquidity buffer requirements for these businesses. The Investment Bank is funded with wholesale liabilities and does
not rely on customer deposit funding from these businesses. The loan to deposit ratio for the Group was broadly
unchanged at 100% (2013: 101%).
As at 30 June 2014, £125bn (2013: £122bn) of total customer deposits were insured through the UK Financial Services
Compensation Scheme and other similar schemes. In addition to these customer deposits, there were £3bn (2013: £3bn) of
other liabilities insured or guaranteed by governments.

Wholesale Funding
Funding of Other Assets as at 30 June 2014
Assets

£bn

Liabilities £bn



Trading Portfolio Assets

59

Repurchase agreements 174
Reverse repurchase agreements

115



Reverse repurchase agreements

57

Trading Portfolio Liabilities 57

Derivative Financial Instruments

332

Derivative Financial Instruments 325

Liquidity pool
2
104

Less than 1 year wholesale debt 86
Other unencumbered assets
3
129

Greater than 1 year wholesale debt and equity 154




? Trading portfolio assets are largely funded by repurchase agreements with 60% (2013: 63%) secured against highly
liquid assets
4
. The weighted average maturity of these repurchase agreements secured against less liquid assets was 67
days (2013: 69 days)
? The majority of reverse repurchase agreements are matched by repurchase agreements. As at 30 June 2014, 72%
(2013: 76%) of matched book activity was secured against highly liquid assets
4
. The remainder of reverse repurchase
agreements are used to settle trading portfolio liabilities
? Derivative assets and liabilities are largely matched. A substantial proportion of balance sheet derivative positions qualify
for counterparty netting and the remaining portions are largely offset once netted against cash collateral received and
paid
? The Group liquidity pool is primarily funded by wholesale debt with the remainder being funded by customer deposits
? Other assets are largely matched by term wholesale debt and equity













1 Includes trading settlements and cash collateral balances of £84bn (2013: £71bn) relating to loans and advances to customers and £75bn (2013: £62bn)
relating to customer deposits.
2 The portion of the liquidity pool estimated to be funded by wholesale funds.
3 Predominantly available for sale investments, trading portfolio assets, financial assets designated at fair value and loans and advances to banks.
4 Highly liquid assets are limited to government bonds, US agency securities and US agency mortgage-backed securities.

Funding Risk - Liquidity



Barclays PLC – 2014 Interim Results 36


Composition of wholesale funding
As at 30 June 2014 total wholesale funding outstanding (excluding repurchase agreements) was £179bn (2013: £186bn).
£86bn (2013: £82bn) of wholesale funding matures in less than one year of which £25bn
1
(2013: £23bn) relates to term
funding.
Outstanding wholesale funding comprised of £35bn (2013: £35bn) secured funding and £144bn (2013: £151bn)
unsecured funding.

Maturity profile
2

Not
more
than
one
month

Over
one
month
but not
more
than
three
months
Over
three
months
but not
more
than six
months
Over six
months
but not
more
than
nine
months
Over
nine
months
but not
more
than
one year
Sub-
total
less
than
one year
Over
one year
but not
more
than
two
years
Over
two
years
but not
more
than five
years
Over
five
years Total




£bn

£bn £bn £bn £bn £bn £bn £bn £bn £bn


Deposits from Banks

10.0

6.8 1.0 4.6 0.1 22.5 0.3 0.2 - 23.0


Certificates of Deposit and Commercial Paper

2.4

8.8 6.4 3.7 3.0 24.3 0.5 1.1 0.4 26.3


Asset Backed Commercial Paper

2.8

2.5 0.1 - - 5.4 - - - 5.4


Senior unsecured (Public benchmark)

1.5

0.1 0.1 2.0 0.6 4.3 2.6 7.6 6.2 20.7


Senior unsecured (Privately placed)

1.3

2.4 2.5 4.1 3.1 13.4 7.8 15.5 11.9 48.6


Covered bonds/ABS

-

3.2 0.2 4.0 1.7 9.1 3.8 4.1 7.3 24.3


Subordinated liabilities

-

- - 0.1 - 0.1 - 2.8 15.6 18.5


Other
3
3.5

1.4 0.7 0.5 0.3 6.4 2.2 1.4 2.1 12.1


Total as at 30 June 2014

21.5

25.2 11.0 19.0 8.8 85.5 17.2 32.7 43.5 178.9


Of which secured

5.0

6.7 0.9 4.5 1.9 19.0 4.2 4.4 7.4 35.0


Of which unsecured

16.5

18.5 10.1 14.5 6.9 66.5 13.0 28.3 36.1 143.9


Total as at 31 December 2013

20.3

24.0 15.5 15.9 6.3 82.0 27.1 33.8 42.6 185.5


Of which secured

4.6

3.7 1.4 3.5 0.7 13.9 7.3 6.5 7.2 34.9


Of which unsecured

15.7

20.3 14.1 12.4 5.6 68.1 19.8 27.3 35.4 150.6


Outstanding wholesale funding includes £49bn (2013: £50bn) of privately placed senior unsecured notes in issue. These
notes are issued through a variety of distribution channels including intermediaries and private banks. A large proportion of
end users of these products are individual retail investors.
The liquidity risk of wholesale funding is carefully managed primarily through the LRA stress tests, against which the
liquidity pool is held. Although not a requirement, the liquidity pool exceeded wholesale funding maturing in less than one
year by £48bn (2013: £45bn).
The average maturity of wholesale funding net of the liquidity pool was at least 80 months (2013: 69 months).
Term financing
The Group issued £9bn of term funding net of early redemptions during H1 2014. In addition, the Group raised £6bn
through participation in the Bank of England’s Funding for Lending Scheme. Barclays has £12bn of term funding maturing
in the reminder of 2014 and £24bn in 2015.
The Group expect to issue more public wholesale debt in the remainder of 2014, in order to maintain a stable and diverse
funding base by type, currency and distribution channel.
Barclays Africa Group Limited
? Liquidity risk is managed separately at BAGL due to local currency, funding and regulatory requirements
? In addition to the Group liquidity pool, BAGL held £5bn (2013: £4bn) of liquidity pool assets against BAGL-specific
anticipated stressed outflows. The liquidity pool consists of South African government bonds and Treasury bills
? The BAGL loan to deposit ratio was 104% (2013: 103%)
? As at 30 June 2014, BAGL had £8bn of wholesale funding outstanding (2013: £9bn), of which £5bn matures in less
than one year(2013: £6bn)
1 Term funding maturities comprise public benchmark and privately placed senior unsecured notes, covered bonds/asset-backed securities (ABS) and
subordinated debt where the original maturity of the instrument was more than 1 year.
2 The composition of wholesale funds comprises the balance sheet reported Deposits from Banks, Financial liabilities at Fair Value, Debt Securities in Issue
and Subordinated Liabilities, excluding cash collateral and settlement balances. It does not include collateral swaps, including participation in the Bank of
England’s Funding for Lending Scheme. Included within deposits from banks are £4bn of liabilities drawn in the European Central Bank’s 3 year LTRO.
3 Primarily comprised of fair value deposits £4bn and secured financing of physical gold £5bn.

Funding Risk - Capital



Barclays PLC – 2014 Interim Results 37



CRD IV Capital
The Capital Requirements Regulation and Capital Requirements Directive implemented Basel 3 within the EU (collectively
known as CRD IV) on 1 January 2014. The rules are supplemented by Regulatory Technical Standards and the PRA’s
rulebook, including the implementation of transitional rules. However, rules and guidance are still subject to change as
certain aspects of CRD IV are dependent on final technical standards and clarifications to be issued by the EBA and adopted
by the European Commission and the PRA. All capital, RWA and leverage calculations reflect Barclays’ interpretation of the
current rules.


Capital Ratios

As at As at
30.06.14 31.12.13
Fully Loaded Common Equity Tier 1
1


9.9%

9.1%
PRA Transitional Common Equity Tier 1
2
9.8%

9.1%
PRA Transitional Tier 1

12.7%

11.3%
PRA Transitional Total Capital

16.0%

15.0%



Capital Resources

£m

£m
Shareholders' equity (excluding non controlling interests) per the balance sheet

58,068

55,385
- Less: Other equity instruments (recognised as AT1 capital)

(4,326)

(2,063)
Adjustment to retained earnings for foreseeable dividends

(596)

(640)



Minority Interests (amount allowed in consolidated CET1)

1,171

1,238



Other regulatory adjustments and deductions


Additional value adjustments

(2,492)

(2,479)
Goodwill and intangible assets
3
(7,828)

(7,618)
Deferred tax assets that rely on future profitability excluding temporary differences

(1,062)

(1,045)
Fair value reserves related to gains or losses on cash flow hedges
3
(532)

(270)
Excess of expected losses over impairment

(2,036)

(2,106)
Gains or losses on liabilities at fair value resulting from own credit
3
612

600
Other regulatory adjustments

(172)

(119)
Direct and indirect holdings by an institution of own CET1 instruments

(25)

(496)
Fully Loaded CET1

Capital 40,782

40,387
Regulatory adjustments relating to unrealised gains
3
(513)

(180)
PRA Transitional CET1 Capital 40,269

40,207



Additional Tier 1 (AT1) capital


Capital instruments and the related share premium accounts

4,326

2,063
Qualifying AT1 capital (including minority interests) issued by subsidiaries

7,592

9,726
Less instruments issued by subsidiaries subject to phase out

(114)

(1,849)
Other regulatory adjustments and deductions

(28)

-
Transitional Additional Tier 1 capital

11,776

9,940
PRA Transitional Tier 1 capital

52,045

50,147



Tier 2 (T2) capital


Qualifying T2 capital (including minority interests) issued by subsidiaries

13,783

16,834
Less instruments issued by subsidiaries subject to phase out

-

(522)
Other regulatory adjustments and deductions

(85)

(12)
PRA Transitional Total regulatory capital

65,743

66,447

? As at 30 June 2014, Barclays’ fully loaded Tier 1 capital was £45,364m, and the fully loaded Tier 1 ratio was 11.0%. Fully
loaded total regulatory capital was £61,740m and the fully loaded total capital ratio was 15.0%. The fully loaded Tier 1
capital and total capital measures are calculated without applying the transitional provisions set out in CRD IV and
assessing compliance of AT1 and T2 instruments against the relevant criteria in CRD IV
? The transitional total capital is calculated on the basis of PRA rules in the December 2013 publication of PS 7/13
4
,
reflecting the minimum Capital Requirements Regulation (CRR) transitional path for the grandfathering of existing
capital instruments within certain limits
1 Following the full implementation of CRD IV reporting in 2014, the previously reported 31 December 2013 RWAs have been revised by £6.9bn to £442bn
and the fully loaded CET1 ratio revised by (0.2)% to 9.1%. As at 31 March 2014, these figures were a £5.7bn increase and a 0.1% decrease respectively.
These additional RWAs have been included within Head Office and Other Operations.
2 The CRD IV CET1 ratio (FSA October 2012 transitional statement) as applicable to Barclays’ Tier 2 Contingent Capital Notes was 12.0% based on £49.3bn
of transitional CRD IV CET1 capital and £411bn RWAs.
3 The capital impacts of these items are net of tax.
4 PS 7/13 refers to PRA policy statement PS7/13 on strengthening capital standards published in December 2013.

Funding Risk - Capital



Barclays PLC – 2014 Interim Results 38



Movement in fully loaded Common Equity Tier 1 (CET1) Capital


Six Months

Ended
30.06.14
£m
Opening Common Equity Tier 1 capital

40,387




Profit for the period

1,216

Movement in own credit
1
12

Movement in dividends

(755)

Retained regulatory capital generated from earnings

473




Movement in reserves - net impact of share awards

305

Movement in available for sale reserves

345

Movement in currency translation reserves

(941)

Retirement benefit remeasurements

237

Other reserves movements

(205)

Other reserves movements

(259)




Movement in regulatory adjustments and deductions:


Minority interests

(67)

Additional value adjustments

(13)

Goodwill and intangible assets
1
(210)

Deferred tax assets that rely on future profitability excluding those arising from temporary differences

(17)

Negative amounts resulting from the calculation of expected loss amounts

70

Direct and indirect holdings by an institution of own CET1 instruments

471

Other regulatory adjustments

(53)

Closing Common Equity Tier 1 capital

40,782

? Fully loaded Common Equity Tier 1 ratio increased to 9.9% (2013: 9.1%) reflecting an increase in CET1 capital of £0.4bn
to £40.8bn and a £31bn decrease in RWAs.
? Barclays generated £1.2bn capital from profits. After adjusting for own credit, dividends paid and regulatory foreseeable
dividends, retained regulatory capital generated from earnings increased CET1 capital by £0.5bn. Other material
movements in CET1 were:
- £0.5bn decrease in the deduction for holdings for own Common Equity Tier 1 instruments following further
management actions
- £0.9bn reduction due to currency movements primarily driven by strengthening of GBP against USD, ZAR and EUR
- £0.3bn increase due to gains in the available for sale reserve
? Transitional total capital decreased by £0.7bn to £65.7bn due to the increase in fully loaded CET1 offset by the removal
of gains in the available for sale reserves in CET1 and a T2 redemption of dated subordinated liabilities
? During Q2 2014, Barclays PLC issued Fixed Rate Resetting Perpetual Subordinated Contingent Convertible Securities as
part of an exchange of £1.5bn of Barclays Bank PLC preference shares and £0.6bn of Tier 1 notes and Reserve Capital
Instruments. The Barclays PLC instruments are full end point compliant Additional Tier 1 capital and replace previously
grandfathered instruments




















































































1 The capital impacts of these items are net of tax.

Funding Risk - Capital



Barclays PLC – 2014 Interim Results 39


Risk Weighted Assets by Risk Type and Business


Counterparty Operational Total

Credit risk credit risk Market risk risk
As at 30 June 2014
£m £m £m £m £m
Personal & Corporate Banking 100,680 1,064 15 16,176 117,935
Barclaycard 32,176 - - 5,505 37,681
Africa Banking 29,088 456 1,314 5,604 36,462
Investment Bank 40,044 27,214 38,585 19,621 125,464
Head Office and Other Operations 3,818 395 577 1,185 5,975
Total Core 205,806 29,129 40,491 48,091 323,517
Barclays Non Core 37,898 23,138 17,842 8,592 87,470
Total risk weighted assets 243,704 52,267 58,333 56,683 410,987

As at 31 December 2013

Personal & Corporate Banking 102,385 823 57 15,020 118,285
Barclaycard 30,033 - - 5,627 35,660
Africa Banking 29,242 538 1,429 6,837 38,046
Investment Bank 38,517 30,711 38,677 18,096 126,001
Head Office and Other Operations
1

6,390 2,158 4,968 1,089 14,605
Total Core
206,567 34,230 45,131 46,669 332,597
Barclays Non Core 48,797 25,861 27,574 7,642 109,874
Total risk weighted assets
255,364 60,091 72,705 54,311 442,471


Risk weighted assets by risk and approach


As at 30 June 2014 £m
- Standardised 77,892
- Internal ratings based 165,812
Credit risk 243,704
- Internal model method 37,537
- Non-model method 14,730
Counterparty risk 52,267
- Standardised 24,125
- Modelled – VaR 34,208
Market risk 58,333
Operational risk 56,683
Total risk weighted assets 410,987

Movement analysis of risk weighted assets



Counterparty Operational



Credit risk

credit risk Market risk risk
Total
Risk weighted assets

£bn

£bn £bn £bn £bn
As at 1 January 2014


255.4 60.1 72.7 54.3 442.5
Book size

7.2

(12.9) (10.0) - (15.7)
Acquisitions and disposals

(4.5)

- - - (4.5)
Book quality

(2.1)

(1.1) 1.2 - (2.0)
Model updates

3.7

3.2 (0.3) 2.4 9.0
Methodology and policy

(9.0)

0.4 (5.1) - (13.7)
Foreign exchange movement (4.3)

- - - (4.3)
Other

(2.7)

2.6 (0.2) - (0.3)
As at 30 June 2014

243.7

52.3 58.3 56.7 411.0













1 Following the full implementation of CRD IV reporting in 2014, the previously reported 31 December 2013 RWAs have been revised by £6.9bn to £14.6bn.

Funding Risk - Capital



Barclays PLC – 2014 Interim Results 40





RWAs decreased £31.5bn to £411.0bn, driven by:

? Book size decreased RWAs by £15.7bn, primarily driven by risk reductions in the trading book within BNC, offset by
balance sheet growth in PCB and increased customer lending in Barclaycard

? Acquisitions and disposals decreased RWAs by £4.5bn, primarily driven by disposals in BNC

? Book quality improved, resulting in a RWA reduction of £2.0bn, primarily driven by changes in risk profile within the
Investment Bank and PCB

? Model updates increased RWAs by £9.0bn, driven by a revision of probability of default metrics for wholesale
portfolios and the annual operational risk refresh
 
? Methodology and policy changes decreased RWAs by £13.7bn, primarily driven by changes to the treatment of high
quality liquidity assets, offset by the early adoption of LGD floors for wholesale exposures

? Foreign exchange movements decreased RWAs by £4.3bn, primarily driven by the appreciation of GBP against ZAR,
USD and EUR
Leverage ratio requirements
CRD IV introduces a non-risk based leverage ratio that is intended to act as a supplementary measure to the risk-based
capital measures. While CRD IV does not currently impose a binding requirement, the PRA requested Barclays to meet a
3% CRD IV adjusted leverage ratio - ‘PRA leverage ratio’ - by June 2014. The PRA leverage ratio is calculated based on fully
loaded CRD IV Tier 1 capital adjusted for certain PRA defined deductions, and a PRA adjusted CRD IV leverage exposure
measure.
On 12 January 2014, the Basel Committee finalised its revised standards for calculating the Basel 3 leverage ratio. These
standards included a number of changes that would require amendment to CRD IV to retain international consistency. The
legislative process to implement these changes is underway and final rules are expected later in 2014. In June 2014 the PRA
issued Supervisory Statement SS3/13 and updated their supervisory expectation with a 3% end point leverage ratio based
on the revised Basel 3 calculation basis that is applicable from 1 July 2014. For the purposes of calculating this ratio, the
PRA adjustments to leverage exposures and Tier 1 capital will no longer apply.
Barclays has disclosed an estimated ‘BCBS 270 leverage ratio’ based on its understanding of the latest requirements that are
expected to be included in the revised CRD IV text and guidance from regulators. The final rules may result in a different
calculation methodology when implemented in the revised CRD IV text.

PRA leverage ratio calculation
For an overview of the basis of preparation for the PRA leverage ratio, please refer to the December 2013 Results
Announcement.
Revised BCBS 270 leverage ratio calculation
The revised rules contain a number of differences to the way elements of leverage exposure are measured under the
current CRD IV rules. Key differences are as follows:
? Counterparty credit risk on derivatives is reduced due to application of eligible collateral, and an exposure value
introduced for net written credit derivatives
? Counterparty credit risk on SFTs changes as a result of the removal of haircuts, however cash receivables must
be retained on the balance sheet and can only be netted in certain circumstances
? Regulatory add-ons relating to off balance sheet undrawn commitments are based on the credit conversion
factors used in the standardised approach to credit risk

Funding Risk - Capital



Barclays PLC – 2014 Interim Results 41


Estimated Leverage





 

 
 



 
IFRS

BCBS 270

PRA

PRA


 
 

Balance Leverage
 
Leverage
 
Leverage

 
 

Sheet exposure
 
exposure
 
exposure



As at

As at

As at

As at



30.06.14

30.06.14

30.06.14

31.12.13

Leverage exposure

£bn

£bn £bn

£bn









Derivatives


IFRS derivative financial instruments

333

333
 
333
 
355

Mark-to-market and margin netting adjustments for derivatives

(298)
 
(268)
 
(288)

Cash collateral pledged on derivatives

48

17
 
39
 
48

Potential Future Exposure on derivatives

195
 
195
 
249

Net written credit protection

29
 
-
 
-
Total derivatives

276
 
299
 
364




Securities Financing Transactions (SFTs)


IFRS Reverse repurchase agreements and other similar secured lending

172

199
 
172
 
187

Remove IFRS SFTs

- (172)
 
(187)

Counterparty risk leverage exposure measure for SFTs

29
 
60
 
92

Total Securities Financing Transactions

228
 
60
 
92




Other assets and adjustments





Loans and advances and other assets

762

762
 
762
 
752

Weighted undrawn commitments

105
 
177
 
179

Regulatory deductions and other adjustments

(18)
 
(32)
 
(22)

Total other assets and adjustments

849
 
907
 
909




Total fully loaded leverage exposure

1,315

1,353
 
1,266
 
1,365



BCBS 270

PRA

PRA

Leverage

Leverage

Leverage



ratio

ratio

ratio



As at

As at

As at



30.06.14

30.06.14

31.12.13

CET1 capital

40.8

40.8

40.4

Additional Tier 1 capital

4.6

4.6

2.3

Tier 1 capital

45.4

45.4

42.7

PRA deductions to CET1 capital



(2.2)

(2.2)

PRA adjusted Tier 1 capital

45.4

43.2

40.5




Fully loaded leverage ratio

3.4%

3.4%

3.0%


? The PRA leverage exposure reduced by £99bn to £1,266bn. The decrease was primarily driven by reductions in
derivatives PFE and the regulatory exposure for SFTs
? £54bn reduction in derivative PFE as a result of £18bn reduction due to trade compression and tear ups,
£13bn reduction due to change of basis of preparation principally relating to sold options, £10bn reduction
due to netting and other optimisations and other reductions due to currency movements
? £32bn reduction in SFT’s primarily driven by netting, collateral and other optimisations as well as other
reductions due to currency movements



Funding Risk - Capital



Barclays PLC – 2014 Interim Results 42


? The estimated BCBS 270 leverage exposure of £1,353bn represents an £87bn increase on the PRA leverage exposure
driven by a change in the treatment of SFTs, derivatives and off balance sheet undrawn commitments
? £181bn increase in SFTs exposure due to the inclusion of £212bn of on and off balance sheet cash
receivables and the change in regulatory counterparty credit risk exposure add on resulting in a £31bn
decrease due to the removal of haircuts
? £23bn decrease in derivatives due £52bn reduction in counterparty credit risk exposure as a result of applying
eligible derivatives collateral, offset by £29bn increase due to the incremental exposure value for net written
credit derivatives
? £72bn reduction in undrawn commitments due the application of credit conversion factors to the exposure
as used in the standardised approach to credit risk

Credit Risk



Barclays PLC – 2014 Interim Results 43




Analysis of Retail and Wholesale Loans and Advances and Impairment
















As at 30.06.14

Gross

L&A
Impairment
Allowance
L&A Net of
Impairment
Credit
Risk Loans


CRLs % of
Gross L&A

Loan
Impairment
Charges
1
Loan Loss
Rates



£m

£m £m £m

%

£m

bps

Personal & Corporate Banking

143,839

1,302 142,537 2,648

1.8

133

19

Africa Banking

20,820

700 20,120 1,175

5.6

167

162

Barclaycard

34,854

1,607 33,247 1,606

4.6

537

311

Barclays Core

199,513

3,609 195,904 5,429

2.7

837

85




Barclays Non-Core

37,383

823 36,560 2,233

6.0

101

54

Total Group Retail

236,896

4,432 232,464 7,662

3.2

938

80




Investment Bank

117,259

31 117,228 43

-

(26)

(4)

Personal & Corporate Banking

80,451

611 79,840 1,852

2.3

97

24

Africa Banking

15,263

263 15,000 633

4.1

29

38

Head Office and Other Operations

2,496

- 2,496 -

-

-

-

Barclays Core

215,469

905 214,564 2,528

1.2

100

9




Barclays Non-Core

40,598

1,629 38,969 2,705

6.7

72

36

Total Group Wholesale

256,067

2,534 253,533 5,233

2.0

172

14




Group Total

492,963

6,966 485,997 12,895

2.6

1,110

45




Traded Loans

3,074

n/a 3,074
Loans and advances designated at
fair value

18,454

n/a 18,454
Loans and advances held at fair
value

21,528

n/a 21,528
Total loans and advances

514,491

6,966 507,525





As at 31.12.13


Personal & Corporate Banking

140,742

1,325 139,417 2,703

1.9

357

25

Africa Banking

21,586

674 20,912 1,205

5.6

388

180

Barclaycard

33,024

1,517 31,507 1,541

4.7

1,096

332

Barclays Core

195,352

3,516 191,836 5,449

2.8

1,841

94




Barclays Non-Core

40,867

856 40,011 2,118

5.2

320

78

Total Group Retail

236,219

4,372 231,847 7,567

3.2

2,161

91




Investment Bank

104,468

- 104,468 -

-

(30)

(3)

Personal & Corporate Banking

77,674

701 76,973 1,861

2.4

264

34

Africa Banking

15,793

352 15,441 722

4.6

89

56

Head Office and Other Operations

3,072

- 3,072 -

-

(3)

(10)

Barclays Core

201,007

1,053 199,954 2,583

1.3

320

16




Barclays Non-Core

43,691

1,833 41,858 3,148

7.2

581

133

Total Group Wholesale

244,698

2,886 241,812 5,731

2.3

901

37




Group Total

480,917

7,258 473,659 13,298

2.8

3,062

64





Traded Loans


1,647

n/a 1,647
Loans and advances designated at
fair value

18,695

n/a 18,695
Loans and advances held at fair
value

20,342

n/a 20,342



Total loans and advances

501,259

7,258 494,001



1 Excluding impairment charges on available for sale investments and reverse repurchase agreements.


Credit Risk



Barclays PLC – 2014 Interim Results 44


? Loans and advances to customers and banks at amortised cost net of impairment increased to £486.0bn (2013:
£473.7bn)
? Investment Bank increased by £12.8bn to £117.2bn reflecting an increase in cash collateral and settlement
balances driven principally by higher trading volumes
? PCB increased £6.0bn to £222.4bn driven by UK mortgage growth and an increase in corporate lending
Analysis of Impairment

Credit impairment charges and other provisions by business





Half Year
Ended
30.06.14

Half Year
Ended
31.12.13
Half Year
Ended
30.06.13


£m

£m £m
Personal and Corporate Banking

230

322 299
Barclaycard

537

556 540
Africa Banking

196

201 276
Investment Bank

(26)

8 (38)
Head Office

-

(3) -
Barclays Core

937

1084 1,077
Barclays Non-Core

173

344 557
Total loan impairment charge
1
1,110

1,428 1,634
Impairment charges on available for sale investments

(19)

1 -
Impairment of reverse repurchase agreements

(5)

11 (3)
Total credit impairment charges and other provisions

1,086

1,440 1,631
? Impairment charges on loans and advances decreased 32% to £1,110m reflecting lower charges in Barclays Non-Core,
Africa Banking and PCB
? Non-Core decreased 69% to £173m driven by the non-recurrence of single name exposure charge of £224m in
the prior year as well as the on-going actions to reduce corporate exposure in Iberia
? Africa decreased 29% to £196m principally due to lower charges in the South Africa home loans portfolio and
depreciation of ZAR against GBP
? PCB decreased 23% to £230m reflecting improvements in personal banking, mortgages and corporates as the
economic environment improved
? Lower overall impairment charges led to a decrease in the loan loss rate to 45bps (2013: 64bps)

















1 Includes charges of £25m (2013: £17m) in respect of undrawn facilities and guarantees.

Credit Risk



Barclays PLC – 2014 Interim Results 45


Analysis of Loans and Advances to Customers and Banks


Loans and Advances at Amortised Cost Net of Impairment Allowances, by Industry Sector and Geography


As at 30th June 2014
United
Kingdom Europe Americas
Africa and
Middle East Asia Total
£m £m £m £m £m £m
Banks 7,351 12,768 10,825 2,280 6,082 39,306
Other financial institutions 27,260 22,175 46,524 2,793 7,604 106,356
Home loans 131,849 32,440 771 13,631 331 179,022
Cards, unsecured loans and other personal lending 29,273 6,259 14,117 3,831 1,376 54,856
Construction and property 18,006 2,434 1,157 2,022 478 24,097
Other 41,255 12,685 8,048 16,183 4,189 82,360
Net loans and advances to customers and banks 254,994 88,761 81,442 40,740 20,060 485,997
Impairment allowance 3,000 2,203 665 1,033 65 6,966
Gross loans and advances to customers and banks 257,994 90,964 82,107 41,773 20,125 492,963

Loans and Advances at FV 16,571 1,479 2,758 643 77 21,528

As at 31st December 2013
Banks 5,796 12,353 10,154 2,394 6,691 37,388
Other financial institutions 22,052 17,719 49,157 6,118 8,124 103,170
Home loans 129,591 34,752 782 14,051 351 179,527
Cards, unsecured loans and other personal lending 28,168 6,792 12,630 3,842 1,283 52,715
Construction and property 18,155 2,402 956 2,288 150 23,951
Other 39,381 12,513 7,450 13,444 4,120 76,908
Net loans and advances to customers and banks 243,143 86,531 81,129 42,137 20,719 473,659
Impairment allowance 2,980 2,486 654 1,079 59 7,258
Gross loans and advances to customers and banks 246,123 89,017 81,783 43,216 20,778 480,917

Loans and Advances at FV 15,992 1,974 1,617 700 59 20,342


Credit Risk



Barclays PLC – 2014 Interim Results 46


Analysis of Potential Credit Risk Loans and Coverage Ratios


CRLs

PPLs PCRLs



As at

As at As at As at As at As at



30.06.14

31.12.13 30.06.14 31.12.13 30.06.14 31.12.13
£m

£m £m £m £m £m
Personal & Corporate Banking

2,648

2,703 215 241 2,863 2,944
Africa Banking

1,175

1,205 182 194 1,357 1,399
Barclaycard

1,606

1,541 188 182 1,794 1,723
Barclays Core

5,429

5,449 585 617 6,014 6,066
Barclays Non-Core

2,233

2,118 76 91 2,309 2,209
Total Group Retail

7,662

7,567 661 708 8,323 8,275



Investment Bank

43
-
91 106 134 106
Personal & Corporate Banking

1,852

1,861 745 840 2,597 2,701
Africa Banking 633

722 108 112 741 834
Head Office and Other Operations


-

-

- -

- -
Barclays Core

2,528

2,583 944 1,058 3,472 3,641
Barclays Non-Core

2,705

3,148 82 42 2,787 3,190
Total Group Wholesale

5,233

5,731 1,026 1,100 6,259 6,831
Group Total

12,895

13,298 1,687 1,808 14,582 15,106





Impairment allowance

CRL coverage PCRL coverage



As at

As at As at As at As at As at



30.06.14

31.12.13 30.06.14 31.12.13 30.06.14 31.12.13
£m

£m % % % %
Personal & Corporate Banking

1,302

1,325 49.2 49.0 45.5 45.0
Africa Banking

700

674 59.6 55.9 51.6 48.2
Barclaycard

1,607

1,517 100.1 98.4 89.6 88.0
Barclays Core

3,609

3,516 66.5 64.5 60.0 58.0
Barclays Non-Core

823

856 36.9 40.4 35.6 38.8
Total Group Retail

4,432

4,372 57.8 57.8 53.3 52.8



Investment Bank

31
-
72.1
-
23.1
-
Personal & Corporate Banking

611

701 33.0 37.7 23.5 26.0
Africa Banking

263

352 41.5 48.8 35.5 42.2
Head Office and Other Operations


-

-

- -

- -
Barclays Core

905

1,053 35.8 40.8 26.1 28.9
Barclays Non-Core

1,629

1,833 60.2 58.2 58.4 57.5
Total Group Wholesale

2,534

2,886 48.4 50.4 40.5 42.2
Group Total

6,966

7,258 54.0 54.6 47.8 48.0


? Credit Risk Loans (CRLs) decreased 3.0% to £12.9bn
? CRLs in wholesale portfolios decreased 8.7% to £5.2bn. This is primarily driven by Non-Core reflecting on-going
actions to reduce corporate exposures in Iberia
? CRLs in retail portfolios have remained stable at £7.7bn. The increase in Non-Core has been offset by a decrease in
Africa Banking reflecting improvements in the home loans portfolio
? Group’s CRL coverage ratio was stable at 54.0% (2013: 54.6%)



Credit Risk



Barclays PLC – 2014 Interim Results 47


Analysis of Forbearance Programmes
Balances Impairment Allowance Allowance Coverage
As at As at As at As at As at As at

30.06.14 31.12.13 30.06.14 31.12.13 30.06.14 31.12.13
£m £m £m £m % %
Personal & Corporate Banking 2,533 2,814 78 90 3.1 3.2
Africa Banking 308 338 41 50 13.3 14.8
Barclaycard 1,044 1,064 353 358 33.8 33.6
Barclays Core 3,885 4,216 472 498 12.1 11.8

Barclays Non-Core 754 786 76 83 10.1 10.6
Total Retail 4,639 5,002 548 581 11.8 11.6

Investment Bank 229 476 4 8 1.7 1.7
Personal & Corporate Banking 1,587 1,569 265 260 16.7 16.6
Africa Banking 129 159 14 14 10.9 8.8
Barclays Core 1,945 2,204 283 282 14.6 12.8

Barclays Non-Core 976 1,181 462 609 47.3 51.5
Total Wholesale 2,921 3,385 745 891 25.5 26.3

Group Total 7,560 8,387 1,293 1,472 17.1 17.6


? Balances in forbearance decreased by 10% to £7.6bn reflecting falls in the majority of businesses. Overall coverage
remained broadly stable at 17.1% (2013: 17.6%)
? Retail forbearance decreased 7% to £4,639m primarily as a result of reductions in PCB, mainly due to a decrease in UK
home loans
? Wholesale forbearance reduced by 14% to £2,921m primarily driven by the exit of a single Investment Bank
counterparty from the forbearance portfolio and further reductions across the Non-Core portfolios


Analysis of Specific Core Portfolios/Businesses
Secured home loans
? Total home loans to retail core customers grew by 2% to £141bn
? The principal home loan portfolios listed below account for 97% (2013: 97%) of total home loans in the Group’s retail
core portfolios and principally comprise first lien mortgages





Home loans principal portfolios















Gross loans and
advances

> 90 Day
arrears


> 90 Day

arrears,
including
recoveries


Annualised gross

charge-off
rates


Recoveries
proportion of
outstanding
balances
Recoveries
impairment
coverage ratio


As at 30.06.14

£m

%

%

%

%

%






PCB - UK

125,221

0.2

0.7

0.4

0.4

15.7




Africa Banking -
South Africa

11,544

0.7

5.6

1.9

4.9

32.6









As at 31.12.13










PCB - UK

122,880

0.3

0.8

0.5

0.5

14.7




Africa Banking-
South Africa


12,172

0.7

6.2

2.6

5.6

34.7




Credit Risk



Barclays PLC – 2014 Interim Results 48


? UK: The home loans portfolio grew by 2% to £125bn. As a result of the ongoing low base rate environment and
conservative credit policy, arrears and charge-off rates remained stable. Buy to let home loans of £10bn (2013: £9bn)
represent 8% (2013: 8%) of total balances. The 90 day arrears rates for Buy to let home loans remained steady at 15bps
while balance weighted portfolio LTV improved to 61.6% (2013: 62.9%), due to an increase in average house prices
? South Africa: Gross loans and advances of £11.5bn (2013: £12.2bn) were broadly unchanged on a constant currency
basis. The improvement in the charge-off rates was due to the continued strong performance of new lending. The
decrease in recoveries balances was driven by a combination of the ongoing strategy of reducing this segment of the
portfolio and lower charge-off rates
? Non-Core Europe: Gross loans and advances to Spain and Italy reduced 7% to £26.4bn reflecting the amortisation of
existing portfolios and reduced new business flows. The 90 days arrears rates excluding recoveries remained broadly
stable in 2014 with Spain at 0.7% (2013: 0.7%) and Italy at 1.2% (2013: 1.1%)


Home loans principal portfolios - distribution of balances by LTV






PCB
UK
Africa Banking
South Africa






30.06.14

31.12.13 30.06.14 31.12.13


%

% % %
<=75%

86.9

84.2 72.2 69.6
>75% and <=80%

5.8

6.9 8.3 8.8
>80% and <=85%

3.1

3.4 6.4 7.1
>85% and <=90%

1.9

2.1 4.5 4.8
>90% and <=95%

1.0

1.3 3.0 3.3
>95% and <=100%

0.6

0.8 1.7 1.9
>100%

0.7

1.3 3.9 4.5



Portfolio Marked To Market LTV:

Balance weighted %



54.5

56.3 61.2 62.3
Portfolio Marked To Market LTV:

Valuation weighted %



42.4

43.6 41.4 42.1



For > 100% LTV:


Balances £m

910

1,596 442 540
Marked to market collateral £m

813

1,411 369 452
Average LTV: Balance weighted %

116.9

120.5 123.7 123.1
Average LTV: Valuation weighted %

111.9

113.2 119.9 119.5
% Balances in Recovery Book

4.0

3.2 42.0 45.6
? House price appreciation in the UK and South Africa led to a reduction on the average LTV of the home loan portfolios
? UK: Balances with >100% LTV reduced 43% to £910m, primarily due to an increase in average house prices
? South Africa: Balances with >100% LTV reduced 18% to £442m, primarily due to decrease in the size of the recoveries
book
Home loans principal portfolios - new lending




PCB - UK

Africa Banking - South Africa




30.06.14

30.06.13 30.06.14 30.06.13


New Bookings (£m)

10,162

7,652 591 532


New Mortgages Proportion Above 85% LTV (%)
1
5.0

2.9 32.9 28.1


Average LTV on New Mortgages: Balance weighted (%)
1
64.4

63.9 75.0 74.1


Average LTV on New Mortgages: Valuation weighted (%)
1
57.2

56.8 65.6 63.8




? UK: New bookings grew by 33% to £10.2bn, reflective of the increased confidence in the housing market. The higher
proportion of bookings above 85% LTV is due to increased appetite for lending into this segment, but remains at
conservative levels
? South Africa: Proportion of new home loans above 85% LTV increased to 32.9% (2013: 28.1%) due to a revised
strategy in H2 13 which allows a greater proportion of higher LTV loans to be booked for customers with high credit
quality








1 UK figures were restated following a detailed review of the LTV’s post migration to a new data management system.

Credit Risk



Barclays PLC – 2014 Interim Results 49


Exposures to interest only home loans
? Interest only mortgages comprise £52.5bn (2013: £52.6bn) of the total £125bn (2013: £123bn) UK home loans
portfolio. Of these, £43bn (2013: £45bn) are owner-occupied with the remaining £9bn (2013: £8bn) buy-to-let
Exposure to interest only owner-occupied home loans


As at

As at
30.06.14 31.12.13
Interest only balances (£m)
1
43,354

44,543
90 days arrears (%)

0.2

0.3
Total Impairment Coverage (bps)

2

2
Marked to market LTV: Balance weighted %

52.6

54.2
Marked to market LTV: Valuation weighted %

40.8

42.4
? In line with the overall portfolio’s performance, risk indicators remained stable with the average balance weighted LTV
for owner-occupied interest only balances reduced to 52.6% (2013: 54.2%) and 90 day arrears remained low at 0.2%
(2013: 0.3%)
Credit cards, overdrafts and unsecured loans
? Gross loans and advances in credit cards, overdrafts and unsecured loans in the Group’s retail core portfolios increased
3% to £44.7bn (2013: £43.4bn)
? The principal portfolios listed below account for 95% (2013: 94%) of total and increased by 4% to £42.4bn (2013:
£40.7bn) with increases in US cards, UK cards and Barclays Partner Finance being offset by decreases in South Africa
Personal Loans and UK overdrafts
Principal Portfolios


Gross Loans
and
Advances

30 Day
Arrears,
excluding
recoveries
90 Day
Arrears,
excluding
recoveries
Annualised
Gross
Charge-off
Rates


Recoveries

Proportion of
Outstanding
Balances
Recoveries
Impairment
Coverage Ratio
As at 30.06.14

£m

% % %

%

%
Barclaycard - UK cards

16,185

2.4 1.2 4.4 4.9

83.7
Barclaycard - US cards
2
11,565

1.9 0.9 3.8 1.8

88.0
Barclaycard - Barclays Partner Finance

3,055

1.6 0.8 2.3 2.9

75.9
Barclaycard - Germany cards

1,308

2.5 1.0 3.9 3.5

74.9
Barclaycard - Iberia cards

1,011

6.5 2.7 7.9 8.9

88.2
PCB - UK personal loans

5,110

2.5 1.3 3.2 14.5

79.3
PCB - UK overdrafts

1,165

4.9 3.5 7.1 15.8

94.9
Africa Banking - South Africa cards

2,255

9.5 5.1 7.3 5.5

69.5
Africa Banking - South Africa personal loans

782

5.6 2.8 8.5 7.7

71.4








As at 31.12.13








Barclaycard - UK cards

15,937

2.4 1.1 4.4

4.6

86.2
Barclaycard - US cards

10,301

2.1 1.0 4.0

1.8

86.6
Barclaycard - Barclays Partner Finance
3
2,765

1.6 0.8 2.9

3.2

83.2
Barclaycard - Germany cards
4
1,290

2.5 1.0 3.7

3.2

73.5
Barclaycard - Iberia cards

1,036

5.7 2.4 10.7

9.9

84.8
PCB - UK personal loans

4,958

2.7 1.2 4.6

15.8

79.4
PCB - UK overdrafts

1,307

4.8 3.3 7.6

14.5

94.5
Africa Banking - South Africa cards

2,224

8.1 4.3 7.3

5.1

70.7
Africa Banking - South Africa personal loans

906

5.4 2.6 7.9 7.4

70.4

















































1 Includes forborne interest-only loans.
2 US Airways portfolio of US$745m, which was brought onto the balance sheet in Q2 14, is included within Gross Loans and Advances but excluded from the
risk metrics.
3 Gross Loans and Advances have been revised to include the Secure Motor portfolio of £266m.
4 Germany cards recovery figures have been restated to align to the Barclays Group charge-off policy and Gross Loans and Advances have been revised to
exclude Personal Loans and Fundy Loans portfolios totaling £879m.

Credit Risk



Barclays PLC – 2014 Interim Results 50


? UK cards: Recovery coverage reduced to 83.7% (2013: 86.2%) following the write off of accounts in late 2013 where
repayments were below that required by Barclays group policy
? US cards: Significant improvement in arrears rates was driven by a targeted growth strategy focused on high quality
customers and low-risk Partnerships
? UK personal loans: Charge-off rates reduced due to the improved performance of new bookings following changes to
credit criteria in 2013
? South Africa cards: The arrears rate deterioration reflected the maturation of lower quality business in the Edcon
portfolio booked pre-2014

Group exposures to Eurozone countries
? The Group recognises the credit and market risk resulting from the ongoing volatility in the Eurozone and continues to
monitor events closely while taking coordinated steps to mitigate the risks associated with the challenging economic
environment
? During H114 the Group’s net on-balance sheet exposures to Spain, Italy, Portugal, Ireland, Cyprus and Greece reduced
by 11% to £47.4bn principally due a fall of 31% in Financial Institutions due to loan repayments; and residential
mortgage exposure decreasing 7% to £29.3bn due to lower volumes of new lending
? As at 30 June 2014, the local net funding deficit in Italy was €10.8bn (2013: €11.6bn) and the deficit in Portugal was
€2.6bn (2013: €3.0bn). The net funding surplus in Spain was €2.4bn (2013: €3.1bn)
? The following table shows Barclays exposure to Eurozone countries monitored internally as being higher risk and thus
being the subject of particular management focus. The basis of preparation is consistent with that described in the 2013
Annual Report
? The net exposure provides the most appropriate measure of the credit risk to which the Group is exposed. The gross
exposure is also presented below, alongside off-balance sheet contingent liabilities and commitments




Net on-
balance Sheet
exposure

Gross on-
balance sheet
exposure
Contingent
liabilities and
commitments
Other
Financial Residential retail
Sovereign institutions Corporate mortgages lending
As at 30.06.14 £m £m £m £m £m £m £m £m
Spain 134 753 2,736 11,710 1,984 17,317 25,198 3,335
Italy 1,898 681 1,377 14,284 1,592 19,832 26,396 2,773
Portugal 165 43 653 3,187 1,370 5,418 5,793 1,575
Ireland 30 2,972 1,394 92 88 4,576 8,217 1,521
Cyprus 42 2 118 20 41 223 322 28
Greece - 27 35 6 6 74 1,119 2
Total 2,269 4,478 6,313 29,299 5,081 47,440 67,045 9,234

As at 31.12.13
Spain 184 1,029 3,203 12,537 2,292 19,245 26,474 3,253
Italy 1,556 417 1,479 15,295 1,881 20,628 27,341 3,124
Portugal 372 38 891 3,413 1,548 6,262 6,608 2,288
Ireland 67 5,032 1,356 103 100 6,658 10,051 2,047
Cyprus - 7 106 19 43 175 256 66
Greece 8 5 51 6 12 82 903 3
Total 2,187 6,528 7,086 31,373 5,876 53,050 71,633 10,781






Market Risk



Barclays PLC – 2014 Interim Results 51




Traded Market Risk
During H114 average DVaR in the trading book reduced in line with lower levels of market activity
Analysis of Management VaR
? The table below shows the total Management VaR on a diversified basis by risk factor. Total Management VaR includes
all trading positions in the Investment Bank, Non-Core and Africa Banking
? Limits are applied against each risk factor VaR as well as total Management VaR, which are then cascaded further by
risk managers to each business
? Average management VaR fell during the period reflecting the lower levels of market volatility than observed in H113
and reduced overall positioning. During the period Management VaR fell to a level as low as £18m



Six months ended 30.06.14



Six months ended 31.12.13



Six months ended 30.06.13


Management VaR (95%)

Daily Avg

High
1
Low
1


Daily Avg High
1
Low
1


Daily Avg High
1
Low
1


£m

£m

£m



£m £m

£m



£m £m

£m

Credit risk

12

15

9

16 21

12

21 25

17

Interest rate risk

10

14

6

11 16

7

14 24

6

Spread risk

5

8

3

7 9

5

15 21

7

Basis risk

6

8

4

9 13

7

13 17

9

Equity risk

12

23

8

11 17

6

10 21

5

Commodity risk

3

8

2

4 6

2

5 8

4

Foreign exchange risk

4

6

2

3 7

2

4 7

2

Inflation risk

3

4

2

3 5

2

4 8

2

Diversification effect

(32)

- - (38) - - (55) - -
Total Management VaR

23

31

18

26 33

21

31 39

23


? In H114, Equity VaR replaced Credit VaR as the single largest contributor, which was reflected in the level of activity
and revenue performance from the Equity business
? The three main contributors to total DVaR were equity, credit and interest rate risks. From average H113 levels, average
DVaR fell for spread risk by £10m (67%), credit risk by £9m (43%), basis risk by £7m (54%) and interest rate risk by
£4m (29%). Average DVaR for the Group fell by £8m (26%)
? The business remained within the Management VaR limits agreed with the Board Financial Risk Committee throughout
H114 for both risk type VaR and total VaR
? For regulatory market risk capital calculations, VaR is calculated at the 99% level. The model is subject to daily back-
testing, where it is compared to profit and loss results. The VaR model has performed well in back-testing and
maintains its Green categorisation, as defined by the PRA



























































































1 The high and low DVaR figures reported for each category did not necessarily occur on the same day as the high and low DVaR reported as a whole.
Consequently a diversification effect balance for the high and low DVaR figures would not be meaningful and is therefore omitted from the above table.


Market Risk



Barclays PLC – 2014 Interim Results 52



Analysis of Net Interest Income Sensitivity
Annual Earnings at Risk (AEaR) is the primary income risk metric used to measure and control non-traded market risk
exposure. AEaR measures net interest income sensitivity over the next twelve months after instantaneous 200bp parallel
shocks up and down are applied to the current yield curve. 200bp shocks are consistent with industry best practice and are
supported by banking regulators.
The table below shows sensitivity analysis on the pre-tax net interest income for the non-trading financial assets and
financial liabilities held at 31 May 2014 and 31 December 2013.
The main model assumptions are:
? The balance sheet is projected on a static basis (kept flat over the horizon) so all changes in AEaR sensitivity are linked
to the interest rate shock, rather than variations in balances
? Balances are adjusted for an assumed behavioural profile. This includes the treatment of fixed rate loans including
mortgages
? The parallel shock down is subject to an interest rate floor at 0%



Net interest income sensitivity (AEaR) by business unit
Period ended 31.05.14
1

Personal &
Corporate
Banking
£m


Barclaycard
£m


Africa
£m
2

Non-core
£m


Other
£m
3

Total
£m


+200bps

412

(74)

28

2

(66)

302

+100bps

224

(35)

14

1

(53)

151

-100bps

(418)

24

(14)

(1)

(8)

(417)

-200bps

(461)

24

(26)

(1)

(17)

(481)




Period ended 31.12.13


+200bps

373

(84)

19

9

(92)

225

+100bps

195

(42)

9

5

(57)

110

-100bps

(315)

25

(8)

(1)

56

(243)

-200bps

(352)

26

(15)

(1)

49

(293)




Total AEaR from a -200bp shock increased by 64% to £(481)m (2013: £(293)m). For a +200bp shock, total AEaR increased
by 34% to £302m (Dec 13: £225m) predominantly due to the following changes in PCB:
? The inclusion of re-pricing lag risk within the overall AEaR numbers from May 14
? A steepening of the forecast base rate path (next base rate rise expected to occur in December 14 against a previous
expectation of February 15) allowing larger shocks to funding income on liability products




































































1 Based on May 2014 data, being the latest available.
2 Excluding Investment banking operations.
3 Other consists of Group Treasury and adjustments made for hedge ineffectiveness.

Statement of Directors’ Responsibilities



Barclays PLC – 2014 Interim Results 53


The Directors (who are listed below) confirm that the condensed consolidated interim financial statements set out on pages
9 to 13 and 55 to 88 have been prepared in accordance with International Accounting Standard 34, ‘Interim Financial
Reporting’, as adopted by the European Union, and that the interim management report herein includes a fair review of the
information required by Disclosure and Transparency Rules 4.2.7R and 4.2.8R namely:
? an indication of important events that have occurred during the six months ended 30 June 2014 and their impact on the
condensed consolidated interim financial statements, and a description of the principal risks and uncertainties for the
remaining six months of the financial year
? material related party transactions in the six months ended 30 June 2014 and any material changes in the related party
transactions described in the last Annual Report

Signed on behalf of the Board by







Antony Jenkins Tushar Morzaria
Group Chief Executive Group Finance Director

Barclays PLC Board of Directors:

Chairman
Sir David Walker

Executive Directors
Antony Jenkins (Group Chief Executive)
Tushar Morzaria (Group Finance Director)

Non-executive Directors
Mike Ashley
Tim Breedon
Crawford Gillies
Reuben Jeffery
Wendy Lucas-Bull
Dambisa Moyo
Frits van Paasschen
Sir Michael Rake
Diane de Saint Victor
Sir John Sunderland
Steve Thieke


Independent Auditors’ Review Report to Barclays PLC



Barclays PLC – 2014 Interim Results 54


Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed the condensed consolidated interim financial statements, defined below, in the interim results
announcement of Barclays PLC for the six months ended 30 June 2014. Based on our review, nothing has come to our
attention that causes us to believe that the condensed consolidated interim financial statements are not prepared, in all
material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the
Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
This conclusion is to be read in the context of what we say in the remainder of this report.
What we have reviewed
The condensed consolidated interim financial statements, which are prepared by Barclays PLC, comprise:
? the Condensed Consolidated Income Statement for the six months ended 30 June 2014;
? the Condensed Consolidated Statement of Profit or Loss and other Comprehensive income for the period then
ended;
? the Condensed Consolidated Balance Sheet as at 30 June 2014;
? the Condensed Consolidated Statement of Changes in Equity for the period then ended;
? the Condensed Consolidated Cash Flow Statement for the period then ended; and
? the related notes to the condensed consolidated interim financial statements.
As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial
statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the
European Union.
The condensed consolidated interim financial statements included in the interim results announcement have been prepared
in accordance with International Accounting Standard 34, ‘Interim Financial Reporting’, as adopted by the European Union
and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
What a review of condensed consolidated financial statements involves
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410,
‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK
and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the interim results announcement and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the condensed consolidated interim financial
statements.

Responsibilities for the condensed consolidated interim financial statements and the review
Our responsibilities and those of the directors
1,2

The interim results announcement including the condensed consolidated interim financial statements, is the responsibility
of, and has been approved by, the Directors. The Directors are responsible for preparing the interim results announcement
in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Our responsibility is to express to the company a conclusion on the condensed consolidated interim financial statements in
the interim results announcement based on our review. This report, including the conclusion, has been prepared for and
only for the company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct
Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other
purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London, United Kingdom
29 July 2014

1 The maintenance and integrity of the Barclays website is the responsibility of the directors; the work carried out by the auditors does not involve
consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements
since they were initially presented on the website.
2 Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 55


1. Basis of preparation
These condensed interim financial statements for the six months ended 30 June 2014 have been prepared in accordance
with the Disclosure and Transparency Rules of the Financial Conduct Authority (previously the Financial Services Authority)
and with IAS 34, ‘Interim financial reporting’, as adopted by the European Union. The condensed interim financial
statements should be read in conjunction with the annual financial statements for the year ended 31 December 2013,
which have been prepared in accordance with IFRSs as adopted by the European Union.

The accounting policies and methods of computation used in these condensed interim financial statements are the same as
those used in the 2013 Annual Report, except as detailed below:

IAS 32 Financial Instruments: Presentation

IAS 32, Amendments to Offsetting Financial Assets and Financial Liabilities, which was adopted by the Group on 1 January
2014, clarified the circumstances in which netting is permitted; in particular what constitutes a currently legally enforceable
right of set-off and the circumstances in which gross settlement systems may be considered equivalent to net settlement.
The financial impact for the group to the 31 December 2013 balance sheet is to gross up certain financial assets and
financial liabilities (mainly derivatives and settlement balances) by £31.4bn that were previously reported net.

Other reporting changes

As a result of the business reorganisation outlined in the Group Strategy Update on 8 May 2014, the Group has made
changes to the composition of its business segments for the purposes of reporting in accordance with IFRS 8. For more
details of the changes made please refer to the Restatement Document published on 10 July 2014, which outlines the
impact on the Group’s previously reported segmental results from the Group structure changes and the subsequent
reallocation of elements of the Head Office results to the businesses post the resegmentation. The Head Office allocation
and resegmentation only affects the reported results of the individual businesses and does not impact the consolidated
primary financial statements.

Future accounting developments

IFRS 9 Financial Instruments

IFRS 9 will change the classification and therefore the measurement of the Group’s financial assets, the recognition of
impairment and hedge accounting. In addition to these changes, the effect of changes in the Group’s own credit risk on the
fair value of financial liabilities that the group designates at fair value through profit and loss will be included in other
comprehensive income rather than the income statement. A final version of the standard was issued in July 2014. The new
Standard will come into effect on 1 January 2018 subject to EU Endorsement.

IFRS 15 Revenue from Contracts with Customers

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) have jointly
issued a converged standard on the recognition of revenue from contracts with customers. The impact for the Group of the
new standard is currently being assessed. The standard will be effective for annual reporting periods beginning on or after 1
January 2017 with retrospective application, subject to EU Endorsement.

For more information on future accounting changes, refer to the Barclays 2013 annual report.
Going Concern
The Directors confirm they are satisfied that the Group has adequate resources to continue in business for the foreseeable
future. For this reason, they continue to adopt the going concern basis for preparing accounts.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 56


2. Staff Costs



Half Year
Ended

Half Year
Ended
Half Year
Ended


30.06.14

31.12.13 30.06.13
Compensation costs

£m £m £m
Deferred bonus charge

573

492 655
Current year bonus charges

430

446 511
Sales commissions, commitments and other incentives

111

246 204
Performance costs

1,114

1,184 1,370
Salaries

2,510

2,278 2,703
Social security costs

363

339 376
Post retirement benefits

327

340 348
Other compensation costs

296

325 353
Total compensation costs

4,610

4,466 5,150



Other resourcing costs


Outsourcing

532

562 522
Redundancy and restructuring

253

304 383
Temporary staff costs

263

270 281
Other

72

122 95
Total other resourcing costs

1,120

1,258 1,281



Total staff costs

5,730

5,724 6,431





Total staff costs decreased 11% to £5,730m, principally reflecting an 19% decrease in performance costs, a 7% decrease in
salaries and a 34% decrease in redundancy and restructuring.
Group compensation costs decreased 10% to £4,610m with the Group compensation: adjusted net operating income ratio
remaining at 38% (2013: 38%). Group performance costs reduced 19% to £1,114m primarily reflecting lower deferred and
current year bonus charges. There was an expected charge of £1.1bn (2013: £1.2bn) relating to future periods for bonus
awards granted but not yet expensed as at 30 June 2014.
No awards have yet been granted in relation to the 2014 bonus pool as decisions regarding incentive awards are not taken
by the Remuneration Committee until the performance for the full year can be assessed. The current year bonus charge for
the first six months represents an accrual for estimated costs in accordance with accounting requirements.
Other resourcing costs decreased by 13% to £1,120m primarily due to a reduction in redundancy and restructuring costs
of 34% to £253m due to a number of Transform initiatives occurring particularly in Europe.










Financial Statement Notes



Barclays PLC – 2014 Interim Results 57


3. Administration and General Expenses



Half Year
Ended

Half Year
Ended

Half Year
Ended


30.06.14

31.12.13 30.06.13


£m £m £m
Infrastructure costs


Property and equipment

727

711 899
Depreciation of property, plant and equipment

292

316 331
Operating lease rentals

288

325 320
Amortisation of intangible assets

251

246 234
Impairment of property, equipment and intangible assets

10

101 48
Total infrastructure costs

1,568

1,699 1,832



Other costs


Consultancy, legal and professional fees

729

712 541
Subscriptions, publications, stationery and communications

378

479 390
Marketing, advertising and sponsorship

260

326 257
Travel and accommodation

97

154 153
UK bank levy

-

504 -
Goodwill impairment

-

79 -
Other administration and general expenses

115

514 177
Total other costs

1,579

2,768 1,518



Total administration and general expenses

3,147

4,467 3,350
Administration and general expenses have decreased 6% to £3,147m. This was driven by decreased infrastructure and
other costs due to the Transform program which is offset by an increase in litigation and conduct charges.

4. Tax

Assets

Liabilities
Current and Deferred Tax Assets and Liabilities 30.06.14 31.12.13 30.06.14 31.12.13
£m £m £m £m
Current tax 216 219 (1,076) (1,042)
Deferred tax 4,245 4,807 (353) (373)
Total 4,461 5,026 (1,429) (1,415)

The tax charge for H114 was £895m (2013: £594m), representing an effective tax rate of 35.8% (2013: 35.4%). The
effective tax rate is higher than the UK statutory tax rate of 21.5% (2013: 23.25%) mainly due to profits outside of the UK
taxed at higher local statutory tax rates, non-creditable taxes and non-deductible expenses, partially offset by the effect of
non-taxable gains and income and deferred tax asset measurement adjustments.

The deferred tax asset of £4,245m (2013: £4,807m) mainly relates to amounts in the UK, US and Spain.















Financial Statement Notes



Barclays PLC – 2014 Interim Results 58


5. Non-controlling Interests

Profit Attributable to Non-controlling
Interest

Equity Attributable to Non-controlling
Interest

Half Year
ended
Half Year
ended
Half Year
ended
As at As at As at
30.06.14 31.12.13 30.06.13 30.06.14 31.12.13 30.06.13
£m £m £m £m £m £m
Barclays Bank PLC Issued:
- Preference shares 237 171 239 4,341 5,868 5,948
- Upper Tier 2 instruments 1 1 1 486 485 486
Barclays Africa Group Limited 149 185 158 2,126 2,204 2,509
Other non-controlling interests 3 (12) 14 4 7 111
Total 390 345 412 6,957 8,564 9,054
Equity attributable to non-controlling interests decreased by £1,607m to £6,957m due to £1,527m of Barclays Bank Plc
preference shares being bought back and cancelled as part of the Additional Tier 1 (AT1) exchange exercise detailed in
Note 14.




6. Earnings Per Share







Half Year
Ended

Half Year
Ended
Half Year
Ended


30.06.14

31.12.13 30.06.13


£m £m £m
Profit/(loss) attributable to ordinary equity holders of the parent
1
1,126

(131) 671
Dilutive impact of convertible options

-

1 -
Tax credit on profit after tax attributable to other equity holders

19

- -
Total profit/(loss) attributable to equity holders of the parent including tax credit on
other equity


1,145

(130) 671
Basic weighted average number of shares in issue
2
16,296

14,308 13,525
Number of potential ordinary shares

127

360 365
Diluted weighted average number of shares

16,423

14,668 13,890



Basic earnings/(loss) per ordinary share

7.0p

(0.9p) 5.0p
Diluted earnings/(loss) per ordinary share

7.0p

(0.9p) 4.8p

7. Dividends on Ordinary Shares
It is Barclays policy to declare and pay dividends on a quarterly basis. The first interim dividend for 2014 of 1p per share was
paid on 23 June 2014. The Board has decided to pay on 19 September 2014, a second interim dividend for 2014 of 1p per
ordinary share to shareholders on the share register on 8 August 2014, making a total for H114 of 2p (2013: 2p).

Half Year ended 30.06.14 Half Year Ended 31.12.13 Half Year Ended 30.06.13
Dividends Paid During the Period Per Share Total Per Share Total Per Share Total
Pence £m Pence £m Pence £m
Final dividend paid during period 3.5p 564 - - 3.5p 442
Interim dividends paid during period 1.0p 164 2.0p 289 1.0p 128

For qualifying US and Canadian resident ADR holders, the second interim dividend of 1p per ordinary share becomes 4p per
ADS (representing four shares). The ADR depositary will post the second interim dividend on 19 September 2014 to ADR
holders on the record at close of business on 8 August 2014.




1 The profit after tax attributable to other equity holders of £90m (2013: £nil) is offset by a tax credit recorded in reserves of £19m (2013: £nil). The net
amount of £71m, along with NCI, is deducted from profit after tax in order to calculate earnings per share.
2 The basic weighted average number of shares excludes Treasury shares held in employee benefit trusts or held for trading. The rights issue in October
2013 resulted in the issue of an additional 3,219m shares. In accordance with IAS33, a retrospective adjustment has been applied to the basic weighted
average number of shares in issue for the prior periods which has resulted in a movement in earnings per share of 5.3p to of 5.0p for the half year ended
30 June 2013.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 59


8. Derivative Financial Instruments


Contract
Notional
Amount
Fair Value
As at 30.06.14 Assets Liabilities
£m £m £m
Foreign exchange derivatives 4,331,867 39,519 (41,055)
Interest rate derivatives 31,655,700 240,332 (227,604)
Credit derivatives 1,246,563 23,571 (22,681)
Equity and stock index and commodity derivatives 1,332,423 27,813 (33,738)
Derivative assets/(liabilities) held for trading 38,566,553 331,235 (325,078)

Derivatives in Hedge Accounting Relationships
Derivatives designated as cash flow hedges 155,819 725 (338)
Derivatives designated as fair value hedges 159,810 1,168 (1,084)
Derivatives designated as hedges of net investments 3,179 92 (1)
Derivative assets/(liabilities) designated in hedge accounting relationships 318,808 1,985 (1,423)

Total recognised derivative assets/(liabilities) 38,885,361 333,220 (326,501)

As at 31.12.13
Foreign exchange derivatives 4,637,028 59,605 (64,765)
Interest rate derivatives 34,706,623 230,127 (217,326)
Credit derivatives 1,576,184 27,350 (27,068)
Equity and stock index and commodity derivatives 1,063,431 30,473 (36,686)
Derivative assets/(liabilities) held for trading 41,983,266 347,555 (345,845)

Derivatives in Hedge Accounting Relationships
Derivatives designated as cash flow hedges 160,809 899 (500)
Derivatives designated as fair value hedges 123,459 1,278 (752)
Derivatives designated as hedges of net investments 19,377 568 (21)
Derivative assets/(liabilities) designated in hedge accounting relationships 303,645 2,745 (1,273)

Total recognised derivative assets/(liabilities) 42,286,911 350,300 (347,118)

Derivative assets decreased by £17bn primarily due to a decrease in foreign exchange derivatives as GBP strengthened
against USD and reduced trading activity; and a decrease in credit derivatives due to tightening of credit spreads and trade
maturities, offset by an increase in interest rate derivatives due to a decrease in major forward interest rates.
Derivative asset exposures would be £305bn (2013: £321bn) lower than reported under IFRS if the netting of financial
instruments and financial collateral were permitted for all amounts that are covered by enforceable netting arrangements,
irrespective of whether the stricter requirements of IAS 32 were met. Similarly, derivative liabilities would be £301bn (2013:
£317bn) lower. Netting posted on the balance sheet under IFRS for Derivative assets and liabilities was £164bn (2013:
£265bn) and £165bn (2013: £265bn) respectively.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 60


9. Fair value of assets and liabilities

This section should be read in conjunction with Note 18 “Fair value of assets and liabilities” of the 2013 Annual Report,
which provides more detail about accounting policies adopted, valuation methodologies used in calculating fair value and,
the valuation control framework which governs oversight of valuations.

Valuation

This section should be read in conjunction with Note 18 “Fair value of assets and liabilities” of the 2013 Annual Report,
which provides more detail about the definitions of the three levels of the fair value hierarchy.

The following table shows the Group’s assets and liabilities that are held at fair value disaggregated by valuation technique
(fair value hierarchy) and balance sheet classification:
Valuation technique using

Quoted
market prices
Observable
inputs
Significant
unobservable
inputs
(Level 1) (Level 2) (Level 3) Total
As at 30.06.14 £m £m £m £m
Trading portfolio assets 53,012 69,391 6,409 128,812
Financial assets designated at fair value 12,131 9,213 18,402 39,746
Derivative financial assets 5,466 322,738 5,016 333,220
Available for sale assets 32,033 52,942 2,249 87,224
Investment property - - 362 362
Non current assets held for sale - - 30 30
Total assets 102,642 454,284 32,468 589,394

Trading portfolio liabilities (34,694) (22,098) (23) (56,815)
Financial liabilities designated at fair value (5) (60,584) (1,659) (62,248)
Derivative financial liabilities (5,648) (315,812) (5,041) (326,501)
Total liabilities (40,347) (398,494) (6,723) (445,564)

As at 31.12.13 £m £m £m £m
Trading portfolio assets 54,363 72,285 6,421 133,069
Financial assets designated at fair value 11,188 9,010 18,770 38,968
Derivative financial assets 4,824 340,463 5,013 350,300
Available for sale assets 36,050 53,561 2,145 91,756
Investment property - - 451 451
Non current assets held for sale - - 114 114
Total assets 106,425 475,319 32,914 614,658

Trading portfolio liabilities (29,450) (24,014) - (53,464)
Financial liabilities designated at fair value (98) (63,058) (1,640) (64,796)
Derivative financial liabilities (5,627) (337,172) (4,319) (347,118)
Total liabilities (35,175) (424,244) (5,959) (465,378)

There are no assets or liabilities measured at fair value on a non-recurring basis.













Financial Statement Notes



Barclays PLC – 2014 Interim Results 61


The following table shows the Group’s assets and liabilities that are held at fair value disaggregated by valuation technique
(fair value hierarchy) and product type:


Assets

Liabilities


Valuation technique using

Valuation technique using



Quoted

market prices
(Level 1)
Observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)
Quoted
market
prices
(Level 1)
Observable
inputs
(Level 2)
Significant
unobservable
inputs
(Level 3)


£m

£m £m £m £m £m
As at 30.06.14


Interest rate derivatives


- 241,060 1,151 - (227,674) (1,343)
Foreign exchange derivatives


-

39,521 104 - (40,945) (120)
Credit derivatives
1

-

21,870 1,701 (26) (22,011) (644)
Equity derivatives

3,625

10,773 1,662 (3,661) (15,768) (2,420)
Commodity derivatives


1,841

9,514 398 (1,961) (9,414) (514)
Government and government sponsored
debt


51,894

68,603 328 (14,275) (16,183) (15)
Corporate debt

307

22,037 3,268 - (3,966) (14)
Certificates of deposit, commercial paper
and other money market instruments


4

953 - - (4,511) -
Reverse repurchase and repurchase
agreements


-

5,767 1 - (5,713) -
Non asset backed loans


-

3,395 16,000 (5) (588) (342)
Asset backed securities


2

17,676 1,885 - (882) (4)
Commercial real estate loans


-

- 1,219 - - -
Issued debt


-

148 - - (46,414) (1,103)
Equity cash products


44,372

7,449 207 (20,419) (2,165) -
Funds and fund linked products


-

2,096 866 - (2,056) (44)
Physical commodities


477

2,206 - - (18) -
Investment properties


-

- 362 - - -
Other
2
120

1,216 3,316 - (186) (160)
Total

102,642

454,284 32,468 (40,347) (398,494) (6,723)



As at 31.12.13


Interest rate derivatives

-

231,218 1,031 - (217,517) (1,046)
Foreign exchange derivatives

-

60,111 117 - (64,715) (86)
Credit derivatives
1
-

25,150 2,200 (26) (26,262) (780)
Equity derivatives

3,353

11,665 1,266 (3,926) (16,237) (1,867)
Commodity derivatives

1,471

12,319 399 (1,675) (12,441) (540)
Government and government sponsored
debt


53,518

63,627 220 (17,833) (17,758) -
Corporate debt

1,005

34,247 3,040 (63) (5,247) (12)
Certificates of deposit, commercial paper
and other money market instruments


-

1,493 - (96) (5,303) (409)
Reverse repurchase and repurchase
agreements


-

5,323 - - (5,306) -
Non asset backed loans

-

2,493 16,132 - - -
Asset backed securities

-

15,141 2,112 - (105) -
Commercial real estate loans

-

- 1,198 - - -
Issued debt

-

54 1 - (48,734) (1,164)
Equity cash products

45,547

397 168 (11,554) (704) -
Funds and fund linked products

-

8,509 550 - (3,369) (54)
Physical commodities

1,155

3,048 - - (72) -
Investment properties

-

- 451 - - -
Other
2
376

524 4,029 (2) (474) (1)
Total

106,425

475,319 32,914 (35,175) (424,244) (5,959)







1 Credit derivatives also includes derivative exposure to Monoline insurers.
2 Other primarily includes receivables resulting from the acquisition of the North American businesses of Lehman Brothers, asset backed loans, private equity
investments and non-current assets held for sale.


Financial Statement Notes



Barclays PLC – 2014 Interim Results 62


Assets and liabilities reclassified between Level 1 and Level 2
There were no transfers between level 1 and 2 during the period.
Level 3 movement analysis
The following table summarises the movements in the Level 3 balance during the year. The table shows gains and losses
and includes amounts for all financial assets and liabilities transferred to and from Level 3 during the year. Transfers have
been reflected as if they had taken place at the beginning of the year.
For the period ended 30 June 2014, net transfers into Level 3 totalled £576m primarily due to £426m of funds and fund
linked products within trading assets and £77m of non asset backed loans classified as trading portfolio assets following a
decrease in the observable market activity. Liabilities of £267m were also transferred in mainly in relation to issued debt
classified as financial liabilities designated at fair value.

Transfers out of level 3 totalled £186m primarily due to a transfer out of non-asset backed loans of £92m within trading
assets, £78m of non-asset backed loans classified as financial assets designated at fair value and £33m of private equity
investments classified as available for sale financial investments in line with more observable market activity.


As at
01.01.14 Purchases Sales Issues Settlements
Total gains and losses in
the period recognised in
the income statement
Total gains
or losses
recognised
in OCI
Transfers
As at
30.06.14
Trading
income
Other
income In Out
£m £m £m £m £m £m £m £m £m £m £m
Government and
government
sponsored debt 161 22 (25) - (25) (12) - - 3 - 124
Corporate debt
3,039 176 (195) - (2) 203 - - 3 (10) 3,214
Asset backed
securities 2,111 1,388 (1,611) - (109) 106 - - 4 (5) 1,884
Non asset backed
loans 176 52 (28) - (1) 13 - - 77 (92) 197
Funds and fund
linked products 494 - (64) - - (35) - - 426 - 821
Other
440 10 (301) - - 11 - - 13 (4) 169
Trading portfolio
assets 6,421 1,648 (2,224) - (137) 286 - - 526 (111) 6,409


Commercial real
estate loans 1,198 994 (761) - (195) (17) - - - - 1,219
Non asset backed
loans 15,956 - (43) 7 (72) 31 2 - - (78) 15,803
Asset backed loans
375 130 (376) - (4) 11 - - - (7) 129
Private equity
investments 1,168 19 (107) - (11) 1 27 - - - 1,097
Other
73 80 (36) - (12) (5) 1 - 57 (4) 154
Financial assets
designated at fair
value 18,770 1,223 (1,323) 7 (294) 21 30 - 57 (89) 18,402


Asset backed
securities 1 - - - - - - - - - 1
Government and
government
sponsored debt 59 145 - - - - - - - - 204
Other
2,085 15 (25) - - 3 (61) 29 31 (33) 2,044
Available for sale
investments 2,145 160 (25) - - 3 (61) 29 31 (33) 2,249


Investment property
451 - (131) - - (9) - - 51 - 362


Non current assets
held for sale 114 - (84) - - - - - - - 30



Financial Statement Notes



Barclays PLC – 2014 Interim Results 63



As at
01.01.14

Purchases Sales Issues Settlements
Total gains and losses in
the period recognised in
the income statement
Total gains
or losses
recognised
in OCI
Transfers
As at
30.06.14
Trading
income
Other
income In Out



£m

£m £m £m £m £m £m £m £m £m £m
Trading portfolio
liabilities

-

(2) - - - (1) - - (20) - (23)






Certificates of
deposit, commercial
paper and other
money market
instruments

(409)

- - - 408 1 - - - - -
Issued debt


(1,164)

- 74 (13) 204 55 - - (267) 8 (1,103)
Other


(67)

(395) 50 (161) 3 4 (1) - - 11 (556)
Financial liabilities
designated at fair
value

(1,640)

(395) 124 (174) 615 60 (1) - (267) 19 (1,659)






Interest rate
derivatives

(15)

(120) (16) - 32 (242) 21 - 154 (6) (192)
Credit derivatives


1,420

5 (14) - (68) (168) (22) - (66) (30) 1,057
Equity derivatives


(601)

(143) (14) (172) 2 91 - - (11) 90 (758)
Commodity
derivatives

(141)

- (13) (5) 5 3 (1) - 63 (27) (116)
Foreign exchange
derivatives

31

136 (13) (34) 38 (233) - - 58 1 (16)
Net derivative
financial
instruments
1
694

(122) (70) (211) 9 (549) (2) - 198 28 (25)






Total


26,955

2,512 (3,733) (378) 193 (189) (34) 29 576 (186) 25,745

Included in financial assets designated at fair value is the Education, Social Housing and Local Authority (ESHLA) loan
portfolio of £15.8bn (2013:£15.6bn). The valuation of the ESHLA portfolio continues to be based on internally modelled
spreads. Valuation uncertainty arises mainly from the long dated nature of the portfolio, the lack of active secondary market
in the loans and the lack of observable loan spreads.







































































































































































1 The derivative financial instruments are represented on a net basis. On a gross basis derivative financial assets as at 30 June 2014 totalled £5,016m (31
December 2013: £5,013m) and derivative financial liabilities totalled £5,041m (31 December 2013: £4,319m).


Financial Statement Notes



Barclays PLC – 2014 Interim Results 64




As at
01.01.13

Purchases Sales Issues Settlements

Total gains and losses in
the period recognised in
the income statement
Total gains
or losses
recognised
in OCI

Transfers
As at
31.12.13
Trading
income
Other
income

In Out
£m £m £m £m £m £m £m £m £m £m £m
Government and
government
sponsored debt 321 135 (199) 82 (23) (3) (11) - - (141) 161
Corporate debt 3,136 84 (83) - - (46) - - - (52) 3,039
Asset backed
securities 3,614 2,773 (4,729) - (389) 831 - - 50 (39) 2,111
Non asset backed
loans 344 91 (281) 35 (37) 16 - - 8 - 176
Funds and fund
linked products 685 - (64) - - (95) - - - (32) 494
Other 414 46 (42) - (44) 44 - - 34 (12) 440
Trading portfolio
assets 8,514 3,129 (5,398) 117 (493) 747 (11) - 92 (276) 6,421

Commercial real
estate loans 1,798 1,542 (1,717) - (526) 156 2 - 2 (59) 1,198
Non asset backed
loans 2,021 390 (1) - (208) (1,441) (107) - 15,317 (15) 15,956
Asset backed loans 564 595 (748) - (23) 106 - - - (119) 375
Private equity
investments 1,350 161 (134) - (87) 50 (139) - 18 (51) 1,168
Other 353 11 (237) - (28) (36) (1) - 105 (94) 73
Financial assets
designated at fair
value 6,086 2,699 (2,837) - (872) (1,165) (245) - 15,442 (338) 18,770

Asset backed
securities 492 - (521) - (29) (1) 30 30 - - 1
Government and
government
sponsored debt 46 13 - - (1) - 1 - - - 59
Other 2,342 25 (77) - (471) 1 255 2 36 (28) 2,085
Available for sale
investments 2,880 38 (598) - (501) - 286 32 36 (28) 2,145

Investment property 1,686 151 (1,210) - - 17 (31) - - (162) 451

Non current assets
held for sale - - - - - - - - 114 - 114




















Financial Statement Notes



Barclays PLC – 2014 Interim Results 65






As at
01.01.13


Purchases Sales Issues Settlements

Total gains and losses in
the period recognised in
the income statement
Total gains
or losses
recognised
in OCI

Transfers
As at
31.12.13
Trading
income
Other
income

In Out


£m

£m £m £m £m £m £m £m £m £m £m
Trading portfolio
liabilities

(2)

(1) - - - 1 - - - 2 -



Certificates of
deposit, commercial
paper and other
money market
instruments

(760)

- - - 7 204 93 - - 47 (409)
Issued debt

(1,439)

- 9 (67) 319 60 6 - (205) 153 (1,164)
Other

(156)

(2) 1 - (2) (3) 3 - - 92 (67)
Financial liabilities
designated at fair
value

(2,355)

(2) 10 (67) 324 261 102 - (205) 292 (1,640)





Interest rate
derivatives

149

(26) (1) - 31 262 2 - (26) (406) (15)
Credit derivatives

1,776

95 (66) (2) 54 (488) (81) - (74) 206 1,420
Equity derivatives

(608)

301 (1) (394) (48) 151 2 - (85) 81 (601)
Commodity
derivatives

117

(57) - (44) 42 66 1 - (146) (120) (141)
Foreign exchange
derivatives

(40)

- - - 145 (44) 1 - (10) (21) 31
Other

(164)

- - - - - - - - 164 -
Net derivative
financial
instruments
1
1,230

313 (68) (440) 224 (53) (75) - (341) (96) 694



Total

18,039

6,327 (10,101) (390) (1,318) (192) 26 32 15,138 (606) 26,955




































1 The derivative financial instruments are represented on a net basis. On a gross basis derivative financial assets as at 31 December 2013 totalled £5,013m
(31 December 2012: £6,217m) and derivative financial liabilities totalled £4,319m (31 December 2012: £4,987m).

Financial Statement Notes



Barclays PLC – 2014 Interim Results 66


Unrealised gains and losses on Level 3 financial assets and liabilities
The following table discloses the unrealised gains and losses recognised in the year arising on Level 3 financial assets and
liabilities held at the period end.


Unrealised gains and losses recognised during the period on Level 3 financial assets and liabilities held at
period end



As at 30.06.14 As at 31.12.13

Income
statement
Other
compre-
hensive
income Total

Income
statement
Other
compre-
hensive
income

Total


Trading
income
Other
income

Trading
income
Other
income
£m £m £m £m £m £m £m

£m

Trading portfolio assets 284 - - 284 222 - -

222

Financial assets designated at fair value (122) 34 - (88) (1,276) 10 -

(1,266)

Available for sale assets 5 (4) 32 33 - (5) 27

22

Investment property (10) - - (10) (27) (31) (58)

Trading portfolio liabilities (1) - - (1) - - -

-

Financial liabilities designated at fair value 22 - - 22 74 - -

74

Net derivative financial instruments (78) (21) - (99) (411) (75) -

(486)

Total 100 9 32 141 (1,418) (101) 27

(1,492)

Valuation techniques and sensitivity analysis

Sensitivity analysis is performed on products with significant unobservable inputs (Level 3) to generate a range of
reasonably possible alternative valuations. The sensitivity methodologies applied take account of the nature of valuation
techniques used, as well as the availability and reliability of observable proxy and historical data and the impact of using
alternative models.

Current year valuation and sensitivity methodologies are consistent with those described within note 18 ‘Fair value of assets
and liabilities’ in the 2013 Annual Report.











Financial Statement Notes



Barclays PLC – 2014 Interim Results 67


Sensitivity analysis of valuations using unobservable inputs
Fair value Favourable changes Unfavourable changes
Product type
Total
assets
Total
liabilities
Income
statement Equity
Income
statement Equity
£m £m £m £m £m £m
As at 30.06.14

Interest rate derivatives 1,151 (1,343) 109 - (108) -
Foreign exchange derivatives 104 (120) 36 - (36) -
Credit derivatives 1,701 (644) 61 - (208) -
Equity derivatives 1,662 (2,420) 321 - (321) (0)
Commodity derivatives 398 (514) 40 - (40) -
Government and government
sponsored debt 328 (15) 1 - (1) -
Corporate debt 3,268 (14) 10 - (9) (0)
Certificates of deposit, commercial
paper and other money market
instruments - - - - - -
Repurchase agreements 1 - - - - -
Non asset backed loans 16,000 (342) 123 - (1,217) -
Asset backed securities 1,885 (4) 89 1 (48) (1)
Commercial real estate loans 1,219 - 56 - (45) -
Issued debt - (1,103) - - - -
Equity cash products 207 - - 10 - (10)
Funds and fund linked products 866 (44) 21 - (21) -
Physical commodities - - - - - -
Investment property 362 - 26 - (12) -
Other 3,316 (160) 225 64 (190) (51)
Total 32,468 (6,723) 1,118 75 (2,256) (62)
As at 31.12.13
Interest rate derivatives 1,031 (1,046) 246 - (251) -
Foreign exchange derivatives 117 (86) 32 - (32) -
Credit derivatives 2,200 (780) 145 - (287) -
Equity derivatives 1,266 (1,867) 234 - (234) -
Commodity derivatives 399 (540) 41 - (41) -
Government and government
sponsored debt 220 - 1 - (1) -
Corporate debt 3,040 (12) 10 - (4) -
Certificates of deposit, commercial
paper and other money market
instruments - (409) - - - -
Non asset backed loans 16,132 - 151 - (1,177) -
Asset backed securities 2,112 - 104 1 (74) (1)
Commercial real estate loans 1,198 - 61 - (29) -
Issued debt 1 (1,164) - - - -
Equity cash products 168 - - 12 - (12)
Funds and fund linked products 550 (54) 25 - (25) -
Investment property 451 - 22 - (21) -
Other 4,029 (1) 186 58 (182) (47)
Total 32,914 (5,959) 1,258 71 (2,358) (60)
The effect of stressing unobservable inputs to a range of reasonably possible alternatives alongside considering the impact
of using alternative models would be to increase fair values by up to £1.2bn (31 December 2013: £1.3bn) or to decrease fair
values by up to £2.3bn (31 December 2013: £2.4bn) with substantially all the potential effect impacting profit and loss
rather than equity.



Financial Statement Notes



Barclays PLC – 2014 Interim Results 68


Significant unobservable inputs
The valuation techniques and significant unobservable inputs for assets and liabilities recognised at fair value and classified
as Level 3, along with the range of values used for those significant unobservable inputs, are consistent with Note 18 ‘Fair
value of assets and liabilities’ in the 2013 Annual Report. The description of the significant unobservable inputs and the
sensitivity of fair value measurement of the instruments categorised as Level 3 assets or liabilities to increases in significant
unobservable inputs is also found in Note 18 ‘Fair value of assets and liabilities’ of the 2013 Annual Report.
Fair value adjustments

Key balance sheet valuation adjustments that may be of interest from a financial statement user perspective are quantified
below:

30.06.14 31.12.13
£m £m
Bid-offer valuation adjustments (366) (406)
Other exit adjustments (171) (208)
Uncollateralised derivative funding (83) (67)
Derivative credit valuation adjustments:
- Monolines (24) (62)
- Other derivative credit valuation adjustments (321) (322)
Derivative debit valuation adjustments 220 310

? Bid offer and other exit adjustments have reduced by £40m to £366m and by £37m to £171m respectively during 2014
as a result of movements in market bid offer spreads
? Derivative credit valuation adjustments reduced by £39m to £345m in 2014 as a result of a reduction in monoline
exposure and improvements in counterparty credit
? Uncollateralised derivative funding adjustments have increased by £16m to £83m
? Derivative debit valuation adjustments have reduced by £90m to £220m as a result of improvements in Barclays credit
Portfolio exemption

The Group uses the portfolio exemption in IFRS 13 Fair Value Measurement to measure the fair value of certain groups of
financial assets and financial liabilities. Assets and liabilities are measured using the price that would be received to sell a net
long position (i.e. an asset) for a particular risk exposure or to transfer a net short position (i.e. a liability) for a particular risk
exposure in an orderly transaction between market participants at the balance sheet date under current market conditions.
Unrecognised gains as a result of the use of valuation models using unobservable inputs

The amount that has yet to be recognised in income that relates to the difference between the transaction price (the fair
value at initial recognition) and the amount that would have arisen had valuation models using unobservable inputs been
used on initial recognition, less amounts subsequently recognised, is as follows:

Half year
ended
Half year
ended
30.06.14 31.12.13
£m £m
Opening balance 137 159
Additions 10 12
Amortisation and releases (22) (34)
Closing balance 125 137
The reserve held for unrecognised gains is predominantly related to derivative financial instruments.





Financial Statement Notes



Barclays PLC – 2014 Interim Results 69


Third party credit enhancements
Structured and brokered certificates of deposit issued by Barclays Group are insured up to $250,000 per depositor, by the
Federal Deposit Insurance Corporation (FDIC) in the United States of America. The FDIC is funded by premiums that
Barclays and other banks pay for deposit insurance coverage. The carrying value of these issued certificates of deposit that
are designated under the IAS 39 fair value option includes this third party credit enhancement. The on balance sheet value
of these brokered certificates of deposit amounted to £3.1bn at 30 June 2014.

Comparison of carrying amounts and fair values for assets and liabilities not held at fair value

Valuation methodologies employed in calculating the fair value of financial assets and liabilities measured at amortised cost
are consistent with the 2013 Annual Report disclosure.

The following table summarises the fair value of financial assets and liabilities measured at amortised cost on the Group’s
balance sheet where carrying amount is not a reasonable approximation of fair value:

As at 30.06.14 As at 31.12.13

Carrying
amount Fair Value
Carrying
amount Fair Value
Financial assets £m £m £m £m
Loans and advances to banks 43,448 43,435 39,422 39,408
Loans and advances to customers:
-Home loans 179,022 166,169 179,527 170,793
-Credit cards, unsecured and other retail lending 62,412 61,975 64,551 63,944
-Finance lease receivables 5,471 5,424 5,827 5,759
-Corporate loans 195,644 192,648 184,332 180,499
Reverse repurchase agreements and other similar secured lending 171,934 171,934 186,779 186,756

Financial liabilities
Deposits from banks (62,167) (62,162) (55,615) (55,646)
Customer accounts:
-Current and demand accounts (142,610) (142,610) (134,849) (134,849)
-Savings accounts (127,807) (127,933) (123,824) (123,886)
-Other time deposits (173,221) (173,254) (173,325) (173,056)
Debt securities in issue (83,832) (84,919) (86,693) (87,022)
Repurchase agreements and other similar secured borrowing (173,669) (173,669) (196,748) (196,748)
Subordinated liabilities (19,301) (21,466) (21,695) (22,193)

10. Subordinated Liabilities

As at As at
30.06.14 31.12.13
£m £m
Opening balance as at 1 January 21,695 24,018
Issuances 23 700
Redemptions (1,526) (1,426)
Other (891) (1,597)
Total dated and undated subordinated liabilities as at period end 19,301 21,695

Subordinated liabilities decreased 11% to £19,301m. Redemptions included £821m Callable Fixed/Floating Rate
Subordinated Notes (€1,000m) and £98m 8.80% Callable Subordinated Notes (ZAR 1,725m). In addition, £607m Tier One
Notes and Reserve Capital Instruments were exchanged as part of the Additional Tier 1 (AT1) exchange exercise detailed in
Note 14.































































Financial Statement Notes



Barclays PLC – 2014 Interim Results 70









11. Provisions

As at As at
30.06.14 31.12.13
£m £m
Conduct Remediation
- Payment Protection Insurance redress 1,295 971
- Interest rate hedging product redress 648 1,169
- Other conduct 288 388
Litigation 358 485
Redundancy and restructuring 344 388
Undrawn contractually committed facilities and guarantees 180 165
Onerous contracts 108 100
Sundry provisions 224 220
Total 3,445 3,886

Payment Protection Insurance Redress
As at 31 December 2013, Barclays had recognised cumulative provisions totalling £3.95bn against the cost of Payment
Protection Insurance (PPI) redress and associated processing costs. Utilisation of £2.98bn left a remaining balance of
£0.97bn at that date.

During H114, utilisation has been £576m, down 15% compared to H113 (£680m) and 16% on H213 (£685m). As at 30
June 2014, 1.1m (31 December 2013: 1.0m) customer initiated claims
1
had been received and processed. The monthly
volume of claims received in H1 declined 22% compared to H113 and 10% versus H213. This rate of decline was slower
than previously expected with an increased level of claims from Claims Management Companies (CMCs) experienced
during Q2 14 in particular. CMC claims have reduced by only 39% from the peak in May 2012 compared to a drop in direct
customer claims of 69%.

The appropriate provision is determined by reference to a number of key assumptions which involve significant
management judgement and modelling:

? Customer initiated claim volumes - claims received but not yet processed as at 30 June and an estimate of future
claims
? Proactive response rate - volume of claims in response to proactive mailing
? Uphold rate - the percentage of claims that are upheld as being valid upon review
? Average claim redress - the expected average payment to customers for upheld claims based on the type and age of
the policy/policies

An additional provision of £900m was recognised in June 2014, as a result of the lower than expected decline in claims,
related referrals of cases to the Financial Ombudsman Service (FOS) and associated operational costs. As at 30 June 2014,
cumulative utilisation has been £3.56bn, leaving a remaining provision of £1.3bn.

The assumptions underlying the provision remain subjective, in particular due to the uncertainty associated with future
claims levels, which include complaints driven by CMC activity. The current provision represents Barclays’ best estimate of
all future expected costs of PPI redress, however, due to the level of uncertainty regarding future complaint volumes it is
possible the eventual outcome may differ from the current estimate. If this were to be material, the provision will be
increased or decreased accordingly.

The following table details, by key assumption, actual data through to 30 June 2014, forecast assumptions used in the
provision calculation and a sensitivity analysis illustrating the impact on the provision if the future expected assumptions
prove too high or too low.









































1 Total claims received to date, which include those received via CMCs but exclude those for which no PPI policy exists and excluding responses to proactive
mailing. This sensitivity includes the associated costs of FOS referrals and operating costs.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 71






Interest Rate Hedging Product Redress


As at 30 June 2014, the provision for interest rate hedging product redress was £648m after H114 utilisation of £521m
primarily due to the payment of redress to customers. Redress outcomes have been communicated to approximately 95%
of the non-sophisticated customers covered by the review. Over 60% of the customers covered by the review have now
been paid all redress due or are not due redress.

.

There has been no significant change to the estimate of future costs and the group expects the provision to be sufficient to
cover the cost of completing redress. No provision has been recognised in relation to possible incremental consequential
loss claims (over and above 8% per annum simple interest and an allowance for tax rate differentials). As at 30 June 2014,
no significant incremental consequential loss claims from customers categorised as non-sophisticated had been agreed.
Incremental consequential loss claims and claims from sophisticated customers will be monitored and future provisions will
be recognised to the extent an obligation resulting in a probable outflow is identified.
























































1 Total claims received to date, including those received via CMCs but excluding those for which no PPI policy exists and excluding responses to proactive
mailing. This sensitivity includes the associated costs of FOS referrals and operating costs.
2 Average uphold rate per claim excludes those for which no PPI policy exists.
3 Average redress stated on a per policy basis.


Assumption

Cumulative
actual
to 30.06.14

Future Expected
Sensitivity Analysis
increase/decrease
in provision
Customer initiated claims received and processed
1
1,120k 330k 50k = £98m
Proactive mailing 680k 320k 50k =£18m
Response rate to proactive mailing

28% 20% 1% = £5m
Average uphold rate per claim
2
76% 80% 1% = £7m
Average redress per valid claim
3
£1,797 £1,668 £100 = £38m

£m
As at 31 December 2013 1,169
Increase in provision in period -
Utilisation of provision in period

(521)
As at 30 June 2014 648

Financial Statement Notes



Barclays PLC – 2014 Interim Results 72


12. Retirement Benefits
As at 30 June 2014, the Group’s IAS 19 (Revised) pension deficit across all schemes was £1.7bn (2013: £1.8bn). The UK
Retirement Fund (UKRF), which is the Group’s main scheme, had a deficit of £1.3bn (2013: £1.4bn).

The movement for the UKRF is largely due to an increase in asset values, which was partially offset by an increase in defined
benefit obligation. The increase in defined benefit obligation can be linked to a decrease in discount rate to 4.31% (2013:
4.46%), partially offset by a decrease in long term expected inflation to 3.34% (2013: 3.42%).

The triennial funding valuation of the UKRF is currently underway with an effective date of 30 September 2013.
Contribution requirements, including any deficit recovery plans, will be agreed between the Group and Trustee by the end
of 2014. The previous triennial funding valuation at 30 September 2010 showed a deficit of £5.0bn. Under the agreed
recovery plan, deficit contributions of £1.8bn were paid to the fund in December 2011 and a further £0.5bn paid in April
2012. Further deficit contributions are payable from 2017 to 2021 starting at £0.7bn in 2017 and increasing by
approximately 3.5% per annum until 2021. These deficit contributions are in addition to the regular contributions to meet
the Group’s share of the cost of benefits accruing over each year.

In non-valuation years the Scheme Actuary prepares an annual update of the funding position. The latest annual update
was carried out as at 30 September 2012 and showed a deficit of £3.6bn.

13. Called Up Share Capital
Called up share capital comprises 16,417m (2013: 16,113m) ordinary shares of 25p each. The increase was largely due to
the issuance of shares under employee share schemes.
As at 30 June 2014, there were no unexercised warrants (2013: nil).

14. Other Equity Instruments
Other Equity Instruments of £4,326m (2013: £2,063m) include Additional Tier 1 (AT1) securities issued by Barclays PLC
during 2013 and 2014. During 2013, there were two separate issuances of Fixed Rate Resetting Perpetual Subordinated
Contingent Convertible Securities, with principal amounts of $2bn and €1bn. In 2014, there were three issuances of Fixed
Rate Resetting Perpetual Subordinated Contingent Convertible Securities, with principal amounts of $1.2bn, €1.1bn and
£0.7bn. The 2014 AT1 securities were issued as part of an exchange of £1,527m of Barclays Bank PLC preference shares
(held as non controlling interests for Barclays PLC) and £607m of subordinated debt instruments (Tier 1 Notes and Reserve
Capital Instruments).
The exchange exercise involved Barclays PLC issuing AT1 securities to investors in exchange for Barclays Bank PLC
preference shares and Barclays Bank PLC subordinated debt instruments held by the same investors. As part of the
exercise, Barclays Bank PLC issued three AT1 instruments to Barclays PLC. Upon completion of the exercise, the preference
shares and subordinated debt instruments were cancelled by Barclays Bank PLC.
The AT1 securities are perpetual securities with no fixed maturity and are structured to qualify as AT1 instruments under
CRD IV.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 73


15. Other Reserves
Currency Translation Reserve
As at 30 June 2014 there was a debit balance of £2,083m (2013: £1,142m debit) in the currency translation reserve. The
increase of £941m (2013: £750m) principally reflected the depreciation of USD against GBP. The currency translation
reserve associated with non-controlling interests increased by £115m (2013: £239m) due to the depreciation of ZAR
against GBP.
The recycling impact of the currency translation reserve recognised in the income statement during the period was a £61m
net gain (2013: £2m).
Available for Sale Reserve
As at 30 June 2014 there was a credit balance of £493m (2013: £148m) in the Available for sale reserve. The increase of
£345m (2013: £96m decrease) was largely driven by £2,014m gains from changes in fair value on Government Bonds
offset by £1,253m due to fair value hedging, £212m of net gains transferred to net profit and £123m of tax.
Cash Flow Hedging Reserve
The cash flow hedging reserve represents the cumulative gains and losses on effective cash flow hedging instruments that
will be recycled to the income statement when the hedged transactions affect profit or loss.
As at 30 June 2014 there was a credit balance of £533m (2013: £273m credit) in the cash flow hedging reserve. The
increase of £260m (2013: £1,080m decrease) principally reflected £535m increases in the fair value of interest rate swaps
held for hedging purposes as interest rate forward curves decreased, partly offset by £212m gains transferred to net profit
and a deferred tax debit of £63m.
Treasury Shares
During the period £842m (2013: £1,049m) net purchases of treasury shares were made, principally reflecting the increase
in shares held for the purposes of employee share schemes, and £775m (2013: £1,034m) was transferred to retained
earnings reflecting the vesting of deferred share based payments.


16. Contingent Liabilities and Commitments





As at

As at


30.06.14

31.12.13


£m

£m
Guarantees and letters of credit pledged as collateral security

13,777

15,226
Performance guarantees, acceptances and endorsements

5,062

5,958
Contingent liabilities

18,839

21,184
Documentary credits and other short-term trade related transactions

1,098

780
Forward starting reverse repurchase agreements

24,492

19,936
Standby facilities, credit lines and other commitments

257,579

254,855

Further details on contingent liabilities relating to legal, competition and regulatory matters can be found in Note 17.

































Financial Statement Notes



Barclays PLC – 2014 Interim Results 74


17. Legal, competition and regulatory matters
Barclays PLC (BPLC), Barclays Bank PLC (BBPLC) and the Group face legal, competition and regulatory challenges, many of
which are beyond our control. The extent of the impact on BPLC, BBPLC and the Group of these matters cannot always be
predicted but may materially impact our operations, financial results, condition and prospects.
Investigations into Certain Agreements
The Financial Conduct Authority (FCA) has alleged that BPLC and BBPLC breached their disclosure obligations in
connection with two advisory services agreements entered into by BBPLC. The FCA has imposed a £50m fine. BPLC and
BBPLC are contesting the findings. The United Kingdom (UK) Serious Fraud Office (SFO) is also investigating these
agreements and the US Department of Justice (DOJ) and US Securities and Exchange Commission (SEC) are investigating
whether the Group’s relationships with third parties who help it to win or retain business are compliant with the US Foreign
Corrupt Practices Act.
Background Information
The FCA has investigated certain agreements, including two advisory services agreements entered into by BBPLC with
Qatar Holding LLC (Qatar Holding) in June and October 2008 respectively, and whether these may have related to BPLC’s
capital raisings in June and November 2008.
The FCA issued warning notices (Warning Notices) against BPLC and BBPLC in September 2013.
The existence of the advisory services agreement entered into in June 2008 was disclosed but the entry into the advisory
services agreement in October 2008 and the fees payable under both agreements, which amount to a total of £322m
payable over a period of five years, were not disclosed in the announcements or public documents relating to the capital
raisings in June and November 2008. While the Warning Notices consider that BPLC and BBPLC believed at the time that
there should be at least some unspecified and undetermined value to be derived from the agreements, they state that the
primary purpose of the agreements was not to obtain advisory services but to make additional payments, which would not
be disclosed, for the Qatari participation in the capital raisings.
The Warning Notices conclude that BPLC and BBPLC were in breach of certain disclosure-related listing rules and BPLC was
also in breach of Listing Principle 3 (the requirement to act with integrity towards holders and potential holders of the
company’s shares). In this regard, the FCA considers that BPLC and BBPLC acted recklessly. The financial penalty in the
Warning Notices against the Group is £50m. BPLC and BBPLC continue to contest the findings.
Other Investigations
The FCA and the SFO have agreed that the FCA enforcement process be stayed pending progress in the SFO’s investigation
into the agreements referred to above, including the advisory services agreements, in respect of which the Group has
received and has continued to respond to requests for further information. The DOJ and the SEC are undertaking an
investigation into whether the Group’s relationships with third parties who assist BPLC to win or retain business are
compliant with the US Foreign Corrupt Practices Act. They are also investigating the same agreements. The US Federal
Reserve has requested to be kept informed.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what
effect, if any, that they might have upon the Group’s operating results, cash flows or financial position in any particular
period.
Swiss / US Tax Programme
In August 2013, the DOJ and the Swiss Federal Department of Finance announced the Programme for Non-Prosecution
Agreements or Non-Targeted letters for Swiss Banks (Programme). This agreement was the consequence of a long-running
dispute between the US and Switzerland regarding tax obligations of US related accounts held in Swiss banks.
Barclays Bank (Suisse) SA and Barclays Bank PLC Geneva Branch were participating in the Programme; however, following
a structured review of their US related accounts, it was determined that continued participation in the Programme was not
warranted. As a result, Barclays Bank (Suisse) SA and Barclays Bank PLC Geneva Branch have withdrawn from the
Programme.


Financial Statement Notes



Barclays PLC – 2014 Interim Results 75


Alternative Trading Systems and High-Frequency Trading
The SEC, the New York State Attorney General (NYAG) and regulators in certain other jurisdictions have been investigating
a range of issues associated with alternative trading systems (ATSs, also known as dark pools) and the activities of high-
frequency traders. The Group has been providing information to the relevant regulatory authorities in response to their
enquiries.
Recent Developments
On 25 June 2014, the NYAG filed a complaint against BPLC and Barclays Capital Inc. (BCI) in the Supreme Court of the State
of New York (NY Supreme Court) alleging, amongst other things, that BPLC and BCI engaged in fraud and deceptive
practices in connection with LX Liquidity Cross, the Group’s SEC-registered ATS.
In addition, on 28 July 2014, BPLC was named as a defendant along with four former or current directors of BPLC in a
proposed securities class action filed in the US District Court for the Southern District of New York (SDNY Court). The
complaint asserts various claims under the US Securities Exchange Act of 1934, principally that certain annual and other
reports of BPLC contained misstatements and omissions concerning LX Liquidity Cross. The complaint was brought on
behalf of a proposed class consisting of all persons or entities that purchased or otherwise acquired BPLC-issued American
Depositary Shares (ADSs), and options contracts to purchase or sell such ADSs, between 2 August 2011 and 25 June 2014.
BPLC is also one of a number of defendants, including several US and international banks, named in proposed securities
class actions filed in the SDNY Court on various dates in 2014 alleging, among other things, violations of the federal
securities laws related to high frequency trading.
It is possible that additional complaints relating to these or similar matters may be brought in the future against BPLC
and/or its affiliates.
Claimed Amounts/Financial Impact
The complaints seek unspecified monetary damages and injunctive relief. It is not currently practicable to provide an
estimate of the financial impact of the matters in this section or what effect, if any, that these matters might have upon
operating results, cash flows or the Group’s financial position in any particular period.
FERC
The US Federal Energy Regulatory Commission (FERC) has filed a civil action against BBPLC and certain of its former traders
in the US District Court in California seeking to collect on an order assessing a $435m civil penalty and the disgorgement of
$34.9m of profits, plus interest, in connection with allegations that BBPLC manipulated the electricity markets in and
around California. BBPLC and the former traders have filed a motion to dismiss the action for improper venue or, in the
alternative, to transfer it to the Southern District of New York (SDNY), and a motion to dismiss the complaint for failure to
state a claim. The US Attorney’s Office in SDNY has informed BBPLC that it is looking into the same conduct at issue in the
FERC matter.
Background Information
In October 2012, FERC issued an Order to Show Cause and Notice of Proposed Penalties (Order and Notice) against BBPLC
and four of its former traders in relation to the Group’s power trading in the western US. In the Order and Notice, FERC
asserted that BBPLC and its former traders violated FERC’s Anti-Manipulation Rule by manipulating the electricity markets
in and around California from November 2006 to December 2008, and proposed civil penalties and profit disgorgement to
be paid by BBPLC.
In July 2013, FERC issued an Order Assessing Civil Penalties in which it assessed a $435m civil penalty against BBPLC and
ordered BBPLC to disgorge an additional $34.9m of profits plus interest (both of which are consistent with the amounts
proposed in the Order and Notice).
In October 2013, FERC filed a civil action against BBPLC and its former traders in the US District Court in California seeking
to collect the penalty and disgorgement amount. FERC’s complaint in the civil action reiterates the allegations previously
made by FERC in its October 2012 Order and Notice and its July 2013 Order Assessing Civil Penalties.
In September 2013, BBPLC was contacted by the criminal division of the US Attorney’s Office in SDNY and advised that
such office is looking at the same conduct at issue in the FERC matter.
On 16 December 2013, BBPLC and its former traders filed a motion to dismiss the action for improper venue or, in the
alternative, to transfer it to the SDNY Court, and a motion to dismiss the complaint for failure to state a claim.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 76


Claimed Amounts/Financial Impact
FERC has made claims against the Group totalling $469.9m, plus interest, for civil penalties and profit disgorgement. This
amount does not necessarily reflect the Group’s potential financial exposure if a ruling were to be made against it.
Investigations into LIBOR, ISDAfix, other Benchmarks and Foreign Exchange Rates
Regulators and law enforcement agencies from a number of governments have been conducting investigations relating to
BBPLC’s involvement in manipulating financial benchmarks and foreign exchange rates. BBPLC has reached settlements
with the relevant law enforcement agency or regulator in certain of the investigations, but others, including those set out in
more detail below, remain pending.
Background Information
The FCA, the US Commodity Futures Trading Commission (CFTC), the SEC, the DOJ Fraud Section (DOJ-FS) and Antitrust
Division (DOJ-AD), the European Commission (Commission), the SFO, the Monetary Authority of Singapore, the Japan
Financial Services Agency, the prosecutors’ office in Trani, Italy and various US state attorneys general are amongst various
authorities conducting investigations into submissions made by BBPLC and other financial institutions to the bodies that set
or compile various financial benchmarks, such as LIBOR and EURIBOR and in connection with efforts to manipulate certain
benchmark currency exchange rates.
On 27 June 2012, BBPLC announced that it had reached settlements with the Financial Services Authority (FSA) (as
predecessor to the FCA), the CFTC and the DOJ-FS in relation to their investigations and BBPLC agreed to pay total penalties
of £290m, which were reflected in operating expenses for 2012. The settlements were made by entry into a Settlement
Agreement with the FSA, a Settlement Order with the CFTC (CFTC Order) and a Non-Prosecution Agreement (NPA) with
the DOJ-FS. In addition, BBPLC was granted conditional leniency from the DOJ-AD in connection with potential US antitrust
law violations with respect to financial instruments that reference EURIBOR. Summaries of the NPA and the CFTC Order are
set out below. The full text of the CFTC Order and the NPA are publicly available on the websites of the CFTC and the DOJ,
respectively.
FSA Settlement Agreement
The terms of the Settlement Agreement with the FSA are confidential. However, the Final Notice of the FSA, which imposed
a financial penalty of £59.5m, is publicly available on the website of the FCA. This sets out the FSA’s reasoning for the
penalty, references the settlement principles and sets out the factual context and justification for the terms imposed.
CFTC Order
In addition to a $200m civil monetary penalty, the CFTC Order requires BBPLC to cease and desist from further violations of
specified provisions of the US Commodity Exchange Act (CEA) and take specified steps to ensure the integrity and reliability
of its benchmark interest rate submissions, including LIBOR and EURIBOR, and improve related internal controls. Amongst
other things, the CFTC Order requires BBPLC to:
? make its submissions based on certain specified factors, with BBPLC’s transactions being given the greatest weight,
subject to certain specified adjustments and considerations;
? implement firewalls to prevent improper communications, including between traders and submitters;
? prepare and retain certain documents concerning submissions and retain relevant communications;
? implement auditing, monitoring and training measures concerning its submissions and related processes;
? make regular reports to the CFTC concerning compliance with the terms of the CFTC Order;
? use best efforts to encourage the development of rigorous standards for benchmark interest rates; and
? continue to cooperate with the CFTC’s ongoing investigation of benchmark interest rates.
DOJ Non-Prosecution Agreement
As part of the NPA, BBPLC agreed to pay a $160m penalty. In addition, the DOJ agreed not to prosecute BBPLC for any
crimes (except for criminal tax violations, as to which the DOJ cannot and does not make any agreement) related to
BBPLC’s submissions of benchmark interest rates, including LIBOR and EURIBOR, contingent upon BBPLC’s satisfaction of

Financial Statement Notes



Barclays PLC – 2014 Interim Results 77


specified obligations under the NPA. In particular, under the NPA, BBPLC agreed for a period of two years from 26 June
2012, amongst other things, to:
? commit no US crimes whatsoever;
? truthfully and completely disclose non-privileged information with respect to the activities of BBPLC, its officers and
employees, and others concerning all matters about which the DOJ inquires of it, which information can be used for any
purpose, except as otherwise limited in the NPA;
? bring to the DOJ’s attention all potentially criminal conduct by BBPLC or any of its employees that relates to fraud or
violations of the laws governing securities and commodities markets; and
? bring to the DOJ’s attention all criminal or regulatory investigations, administrative proceedings or civil actions brought
by any governmental authority in the US by or against BBPLC or its employees that alleges fraud or violations of the laws
governing securities and commodities markets.
BBPLC also agreed to cooperate with the DOJ and other government authorities in the US in connection with any
investigation or prosecution arising out of the conduct described in the NPA, which commitment shall remain in force until
all such investigations and prosecutions are concluded. BBPLC also continues to cooperate with the other ongoing
investigations.
In anticipation of the expiry of the two year period, Barclays and DOJ-FS entered into a letter agreement which: (1) gives
DOJ-FS until 27 June 2015 to make a determination under the NPA solely as to whether any of Barclays trading activities in
the foreign exchange market during the two year period from 26 June 2012 constituted the commission of a “United States
crime”; and (2) with respect to the ongoing investigation of those trading activities by DOJ-FS and DOJ-AD, extends
Barclays’ obligation to disclose non-privileged information in response to inquiries of the DOJ-FS to 27 June 2015. The two
year period under the NPA has otherwise expired.
Investigations by the US State Attorneys General
Following the settlements announced in June 2012, 31 US state attorneys general commenced their own investigations into
LIBOR, EURIBOR and the Tokyo Interbank Offered Rate. The NYAG, on behalf of this coalition of attorneys general, issued a
subpoena in July 2012 to BBPLC (and subpoenas to a number of other banks) to produce wide-ranging information and has
since issued additional information requests to BBPLC for both documents and transactional data. BBPLC is responding to
these requests on a rolling basis.
Investigation by the SFO
In addition, following the settlements announced in June 2012, the SFO announced in July 2012 that it had decided to
investigate the LIBOR matter, in respect of which BBPLC has received and continues to respond to requests for information.
Investigations by the European Commission
The Commission has also been conducting investigations into the manipulation of, amongst other things, EURIBOR. On 4
December 2013, the Commission announced that it had reached a settlement with the Group and a number of other banks
in relation to anti-competitive conduct concerning EURIBOR. The Group had voluntarily reported the EURIBOR conduct to
the Commission and cooperated fully with the Commission’s investigation. In recognition of this cooperation, the Group
was granted full immunity from the financial penalties that would otherwise have applied.
ISDAfix Investigation
Regulators and law enforcement agencies, including the CFTC and the FCA, are also conducting separate investigations into
historical practices with respect to ISDAfix, amongst other benchmarks. BBPLC has received and continues to respond to
subpoenas and requests for information from various authorities including the CFTC and the FCA.
Foreign Exchange Trading Investigation
Various regulatory and enforcement authorities, including the FCA, the CFTC, the DOJ, the SEC, the New York State
Department of Financial Services and the Hong Kong Monetary Authority are investigating foreign exchange trading,
including possible attempts to manipulate certain benchmark currency exchange rates or engage in other activities that
would benefit their trading positions. Certain of these investigations involve multiple market participants in various
countries. BBPLC has received enquiries from certain of these authorities related to their particular investigations, and from
other regulators interested in foreign exchange issues. The Group is reviewing its foreign exchange trading covering a
several year period at least through October 2013 and is cooperating with the relevant authorities in their investigations.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 78


For a discussion of litigation arising in connection with these investigations see “LIBOR and other Benchmarks Civil Actions”
and “Civil Actions in Respect of Foreign Exchange Trading” below.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect, if
any, that these matters might have upon operating results, cash flows or the Group’s financial position in any particular
period. Amongst other things, a breach of any of the NPA provisions could lead to prosecutions in relation to BBPLC’s
benchmark interest rate submissions and could have significant consequences for BBPLC’s current and future business
operations in the US.
LIBOR and other Benchmarks Civil Actions
A number of individuals and corporates in a range of jurisdictions have threatened or brought civil actions against the
Group and other banks in relation to manipulation of LIBOR and/or other benchmark rates. The lawsuits seek an
unspecified amount of damages with the exception of five lawsuits, in which the plaintiffs are seeking a combined total in
excess of $1.25bn in actual damages against all defendants, including BBPLC, plus punitive damages. While several of such
cases have been dismissed, others remain pending and their ultimate impact is unclear.
Background Information
Following the settlements of the investigations referred to above in “Investigations into LIBOR, ISDAfix, other benchmarks
and foreign exchange rates”, a number of individuals and corporates in a range of jurisdictions have threatened or brought
civil actions against the Group in relation to LIBOR and/or other benchmarks.
The majority of the USD LIBOR cases, which have been filed in various US jurisdictions, have been consolidated for pre-trial
purposes before a single Judge in the SDNY Court (MDL Court).
The complaints are substantially similar and allege, amongst other things, that BBPLC and the other banks individually and
collectively violated provisions of the US Sherman Antitrust Act, the CEA, the US Racketeer Influenced and Corrupt
Organizations Act (RICO) and various state laws by manipulating USD LIBOR rates.
The lawsuits seek unspecified damages with the exception of five lawsuits, in which the plaintiffs are seeking a combined
total in excess of $1.25bn in actual damages against all defendants, including BBPLC, plus punitive damages. Some of the
lawsuits also seek trebling of damages under the US Sherman Antitrust Act and RICO.
The proposed class actions purport to be brought on behalf of (amongst others) plaintiffs that (i) engaged in USD LIBOR-
linked over-the-counter transactions (OTC Class); (ii) purchased USD LIBOR-linked financial instruments on an exchange
(Exchange-Based Class); (iii) purchased USD LIBOR-linked debt securities (Debt Securities Class); (iv) purchased adjustable-
rate mortgages linked to USD LIBOR; or (v) issued loans linked to USD LIBOR.
USD LIBOR Cases in MDL Court
In March 2013, the MDL Court issued a decision dismissing the majority of claims against BBPLC and other panel bank
defendants in three lead proposed class actions (Lead Class Actions) and three lead individual actions (Lead Individual
Actions).
Following the decision, the plaintiffs in the Lead Class Actions sought permission to either file an amended complaint or
appeal an aspect of the March 2013 decision. In August 2013 and June 2014, the MDL Court denied the majority of the
motions presented in the Lead Class Actions. As a result, the:
? Debt Securities Class has been dismissed entirely;
? the claims of the Exchange-Based Class have been limited to claims under the CEA; and
? the claims of the OTC Class have been limited to claims for unjust enrichment and breach of the implied covenant
of good faith and fair dealing.
Subsequent to the MDL Court’s March 2013 decision, the plaintiffs in the Lead Individual Actions filed a new action in
California state court (since moved to the MDL Court) based on the same allegations as those initially alleged in the
proposed class action cases discussed above. The Debt Securities Class attempted to appeal the dismissal of their action to
the U.S. Court of Appeals for the Second Circuit (Second Circuit), but the Second Circuit dismissed the appeal as untimely
on the grounds that the MDL Court had not reached a decision resolving all of the claims in the consolidated actions. The
U.S. Supreme Court has agreed to review the dismissal of the Debt Securities Class’ appeal. Depending on the decision of

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Barclays PLC – 2014 Interim Results 79


the U.S. Supreme Court and further proceedings in the MDL Court, various plaintiffs may attempt to bring appeals of some
or all of the MDL Court’s decisions in the future.
Additionally, a number of other actions before the MDL Court remain stayed, pending further proceedings in the Lead Class
Actions.
Until there are further decisions, the ultimate impact of the MDL Court’s decisions will be unclear, although it is possible
that the decisions will be interpreted by courts to affect other litigation, including the actions described below, some of
which concern different benchmark interest rates.
Additional USD LIBOR Case in the SDNY
An additional individual action was commenced on 13 February 2013 in the SDNY against BBPLC and other panel bank
defendants. The plaintiff alleged that the panel bank defendants conspired to increase USD LIBOR, which caused the value
of bonds pledged as collateral for a loan to decrease, ultimately resulting in the sale of the bonds at a low point in the
market. This action is not assigned to the MDL Court; it is proceeding on a different schedule before a different judge in the
SDNY. The panel bank defendants have moved to dismiss the action, and their motion is now fully submitted to the court.
Securities Fraud Case in the SDNY
BPLC, BBPLC and BCI have also been named as defendants along with four former officers and directors of BBPLC in a
proposed securities class action pending in the SDNY in connection with BBPLC’s role as a contributor panel bank to LIBOR.
The complaint asserts claims under the US Securities Exchange Act of 1934, principally alleging that BBPLC’s Annual
Reports for the years 2006 to 2011 contained misstatements and omissions concerning (amongst other things) BBPLC’s
compliance with its operational risk management processes and certain laws and regulations. The complaint also alleges
that BBPLC’s daily USD LIBOR submissions constituted false statements in violation of US securities law. The complaint was
brought on behalf of a proposed class consisting of all persons or entities that purchased BPLC-sponsored American
Depositary Receipts on a US securities exchange between 10 July 2007 and 27 June 2012. In May 2013, the district court
granted BBPLC’s motion to dismiss the complaint in its entirety. The plaintiffs appealed, and, in April 2014, the Second
Circuit issued an order upholding the dismissal of certain of the plaintiffs’ claims, but reversing the dismissal of the
plaintiffs’ claims that BBPLC’s daily USD LIBOR submissions constituted false statements in violation of US securities law.
The action will be remanded back to the district court for further proceedings.
Complaint in the US District Court for the Central District of California
In July 2012, a purported class action complaint in the US District Court for the Central District of California was amended to
include allegations related to USD LIBOR and name BBPLC as a defendant. The amended complaint was filed on behalf of a
purported class that includes holders of adjustable rate mortgages linked to USD LIBOR. BBPLC moved to dismiss all of the
plaintiffs’ claims and, in October 2012, the district court granted the motion to dismiss. The plaintiffs appealed the dismissal
to the US Court of Appeals for the Ninth Circuit (Ninth Circuit), and, in March 2014, the Ninth Circuit issued an order
reversing dismissal of the proposed class action, which reinstated most of the plaintiffs’ claims. The action has now been
remanded back to the district court for further proceedings, and one of the plaintiffs has indicated she will file a fourth
amended complaint in August 2014.
Japanese Yen LIBOR Case in SDNY
An additional class action was commenced in April 2012 in the SDNY against BBPLC and other Japanese Yen LIBOR panel
banks by a plaintiff involved in exchange-traded derivatives. The complaint also names members of the Japanese Bankers
Association’s Euroyen Tokyo Interbank Offered Rate (Euroyen TIBOR) panel, of which BBPLC is not a member. The
complaint alleges, amongst other things, manipulation of the Euroyen TIBOR and Yen LIBOR rates and breaches of the CEA
and US Sherman Antitrust Act between 2006 and 2010. The defendants filed a motion to dismiss and, on 28 March 2014,
the Court issued a decision granting in part and denying in part that motion. Specifically, the court dismissed the plaintiff’s
antitrust claims in full, but sustained the plaintiff’s CEA claims. The defendants have moved for reconsideration of the
decision concerning the CEA claims, and the plaintiff has moved for leave to file a third amended complaint adding
additional claims, including a RICO claim.
EURIBOR Cases
On 12 February 2013, a Euribor-related class action was filed against BPLC, BBPLC and BCI and other Euribor panel banks.
The plaintiffs assert antitrust, CEA, RICO, and unjust enrichment claims. In particular, BBPLC is alleged to have conspired
with other Euribor panel banks to manipulate Euribor. The lawsuit is brought on behalf of purchasers and sellers of NYSE
LIFFE Euribor futures contracts, purchasers of Euro currency-related futures contracts and purchasers of other derivative

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Barclays PLC – 2014 Interim Results 80


contracts (such as interest rate swaps and forward rate agreements that are linked to Euribor) during the period 1 June
2005 through 31 March 2011.
In addition, BBPLC has been granted conditional leniency from the DOJ-AD in connection with potential US antitrust law
violations with respect to financial instruments that reference EURIBOR. As a result of that grant of conditional leniency,
BBPLC is eligible for (i) a limit on liability to actual rather than treble damages if damages were to be awarded in any civil
antitrust action under US antitrust law based on conduct covered by the conditional leniency and (ii) relief from potential
joint-and-several liability in connection with such civil antitrust action, subject to BBPLC satisfying the DOJ-AD and the
court presiding over the civil litigation of fulfilment of its cooperation obligations.
Non-US Cases
In addition to US actions, legal proceedings have been brought or threatened against the Group in connection with alleged
manipulation of LIBOR and EURIBOR, in a number of jurisdictions. The first such proceeding in England and Wales was
brought by Graiseley Properties Limited for trial in the High Court of Justice and was settled on confidential terms in April
2014. The number of such proceedings in non US jurisdictions, the benchmarks to which they relate, and the jurisdictions
in which they may be brought are anticipated to increase over time.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what
effect, if any, that they might have upon the Group’s operating results, cash flows or financial position in any particular
period.
Civil Actions in Respect of Foreign Exchange Trading
Since November 2013, a number of civil actions have been filed in the SDNY on behalf of proposed classes of plaintiffs
alleging manipulation of foreign exchange markets under the US Sherman Antitrust Act and New York state law and
naming several international banks as defendants, including BBPLC.
Recent Developments
The SDNY Court, before whom all the cases are pending, has combined all actions alleging a class of U.S. persons in a single
consolidated action and has directed that this consolidated action be coordinated for pretrial and other proceedings with
two cases making similar allegations on behalf of a Norwegian class and a Korean class, respectively. The defendants,
including BBPLC, have moved to dismiss the complaints.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what
effect, if any, that they might have upon the Group’s operating results, cash flows or financial position in any particular
period.
Civil Actions in Respect of the Gold Fix
Since March 2014, a number of civil complaints have been filed in US federal courts, each on behalf of a proposed class of
plaintiffs, alleging that Barclays entities and other members of The London Gold Market Fixing Ltd. manipulated the prices
of gold and gold derivative contracts in violation of the CEA, the US Sherman Antitrust Act, and state antitrust and
consumer protection laws.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the potential exposure of the actions
described or what effect, if any, that they might have upon operating results, cash flows or the Group’s financial position in
any particular period.
US Residential Mortgage Related Activity and Litigation
The Group’s activities within the US residential mortgage sector during the period from 2005 through 2008 included:
? Sponsoring and underwriting of approximately $39bn of private-label securitisations;
? Economic underwriting exposure of approximately $34bn for other private-label securitisations;

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Barclays PLC – 2014 Interim Results 81


? Sales of approximately $0.2bn of loans to government sponsored enterprises (GSEs); and
? Sales of approximately $3bn of loans to others.
In addition, during this time period, approximately $19.4bn of loans (net of approximately $500m of loans sold during this
period and subsequently repurchased) were also originated and sold to third parties by mortgage originator affiliates of an
entity that the Group acquired in 2007 (Acquired Subsidiary).
In connection with its loan sales and certain private-label securitisations the Group provided certain loan level
representations and warranties (R&Ws), which if breached may require the Group to repurchase the related loans. On 30
June 2014, the Group had unresolved repurchase requests relating to loans with a principal balance of approximately
$2.2bn at the time they were sold, and civil actions have been commenced by various parties alleging that the Group must
repurchase such loans. In addition, the Group is party to a number of lawsuits filed by purchasers of residential mortgage-
backed securities (RMBS) asserting statutory and/or common law claims and has entered into tolling agreements with
certain institutional purchasers of RMBS concerning their potential claims. The current outstanding face amount of RMBS
related to such pending and threatened claims against the Group as of 30 June 2014 was approximately $1.5bn.
RMBS Repurchase Requests
Background
In connection with the Group’s loan sales and sponsored private-label securitisations, the Group provided certain R&Ws
generally relating to the underlying mortgages, the property, mortgage documentation and/or compliance with law. The
Group was the sole provider of R&Ws with respect to:
? Approximately $5bn of Group sponsored securitisations;
? Approximately $0.2bn of sales of loans to GSEs; and
? Approximately $3bn of loans sold to others.
? In addition, the Acquired Subsidiary provided R&Ws on all of the $19.4bn of loans it sold to third parties.
Other than approximately $1bn of loans sold to others for which R&Ws expired prior to 2012, there are no stated expiration
provisions applicable to the R&Ws made by the Group or the Acquired Subsidiary. The Group’s R&Ws with respect to the
$3bn of loans sold to others are related to loans that were generally sold at significant discounts and contained more
limited R&Ws than loans sold to GSEs, the loans sold by the Acquired Subsidiary or the Group sponsored securitisations.
R&Ws on the remaining Group sponsored securitisations were primarily provided by third party originators directly to the
securitisation trusts with a Group subsidiary, as depositor for the securitisation, providing more limited R&Ws.
Under certain circumstances, the Group and/or the Acquired Subsidiary may be required to repurchase the related loans or
make other payments related to such loans if the R&Ws are breached.
The unresolved repurchase requests received on or before 30 June 2014 associated with all R&Ws made by the Group or the
Acquired Subsidiary on loans sold to GSEs and others and private-label activities had an original unpaid principal balance of
approximately $2.2bn at the time of such sale.
Substantially all of the unresolved repurchase requests discussed above relate to civil actions that have been commenced
by the trustees for certain RMBS securitisations in which the trustees allege that the Group and/or the Acquired Subsidiary
must repurchase loans that violated the operative R&Ws. The trustees in these actions have also alleged that the operative
R&Ws may have been violated with respect to a greater (but unspecified) amount of loans than the amount of loans
previously stated in specific repurchase requests made by such trustees.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what
effect, if any, that they might have upon the Group’s operating results, cash flows or financial position in any particular
period.




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Barclays PLC – 2014 Interim Results 82


RMBS Securities Claims
Background
As a result of some of the RMBS activities described above, the Group is party to a number of lawsuits filed by purchasers of
RMBS. In April 2014, the Group settled RMBS related lawsuits brought by the US Federal Housing Finance Agency (FHFA).
However, the Group remains party to a number of similar lawsuits filed by purchasers of RMBS sponsored and/or
underwritten by the Group between 2005 and 2008. As a general matter, these lawsuits allege, amongst other things, that
the RMBS offering materials allegedly relied on by such purchasers contained materially false and misleading statements
and/or omissions and generally demand rescission and recovery of the consideration paid for the RMBS and recovery of
monetary losses arising out of their ownership. The Group has also entered into tolling agreements with certain
institutional purchasers of RMBS that have threatened to assert claims of various types against the Group in connection
with the sale of RMBS sponsored and/or underwritten by the Group.
In addition, the Group has received inquiries, including subpoenas, from various regulatory and governmental authorities,
including the DOJ, regarding its mortgage-related activities, and is cooperating with such inquiries.
The original face amount of RMBS related to the pending and threatened civil actions against the Group total approximately
$4.1bn, of which approximately $1.5bn was outstanding as at 30 June 2014.
Cumulative realised losses reported on these RMBS as at 30 June 2014 were approximately $0.9bn.
Recent Developments
On 24 April 2014, the Group settled RMBS litigation brought by the FHFA against BBPLC and certain of its affiliates for
$280m. These litigations related to allegedly materially false and misleading statements and/or omissions that were
allegedly reflected in offering materials for RMBS purchased by the Federal National Mortgage Association (Fannie Mae)
and Federal Home Loan Mortgage Corporation (Freddie Mac).
Claimed Amounts/Financial Impact
If the Group were to lose the pending and threatened actions the Group believes it could incur a loss of up to the
outstanding amount of the RMBS at the time of judgement (taking into account further principal payments after 30 June
2014), plus any cumulative losses on the RMBS at such time and any interest, fees and costs, less the market value of the
RMBS at such time and less any provisions taken to date.
The Group has estimated the total market value of these RMBS as at 30 June 2014 to be approximately $1bn. The Group
may be entitled to indemnification for a portion of such losses.
Lehman Brothers
Since September 2009, the Group has been engaged in litigation with various entities that have sought to challenge certain
aspects of the transaction pursuant to which BCI and other companies in the Group acquired most of the assets of Lehman
Brothers Inc. (LBI) in September 2008, as well as the court order (Order) approving the sale (Sale). The Order was upheld by
the courts and is no longer being challenged. Lower courts have ruled for the Group on certain claims and against the
Group on certain claims with respect to its rights over assets it claims from the Sale and an appeal process is currently
pending before the Second Circuit. The Second Circuit’s ruling could result in additional recoveries or losses for the Group
and may be subject to further appeals or proceedings.
Background Information
In September 2009, motions were filed in the United States Bankruptcy Court for the SDNY (Bankruptcy Court) by Lehman
Brothers Holdings Inc. (LBHI), the SIPA Trustee for Lehman Brothers Inc. (Trustee) and the Official Committee of Unsecured
Creditors of Lehman Brothers Holdings Inc. (Committee). All three motions challenged certain aspects of the Sale, as well as
the Order. The claimants sought an order voiding the transfer of certain assets to BCI, requiring BCI to return to the LBI
estate any excess value BCI allegedly received, and declaring that BCI is not entitled to certain assets that it claims pursuant
to the Sale documents and the Order (Rule 60 Claims).
In January 2010, BCI filed its response to the motions and also filed a motion seeking delivery of certain assets that LBHI and
LBI had failed to deliver as required by the Sale documents and the Order (together with the Trustee’s competing claims to
those assets, Contract Claims).
In 2011, the Bankruptcy Court rejected the Rule 60 Claims and decided some of the Contract Claims in the Trustee’s favour
and some in favour of the Group. The Group and the Trustee each appealed the Bankruptcy Court’s adverse rulings on the

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Barclays PLC – 2014 Interim Results 83


Contract Claims to the SDNY Court. LBHI and the Committee did not appeal the Bankruptcy Court’s ruling on the Rule 60
Claims.
The SDNY Court issued an opinion in June 2012, reversing one of the Bankruptcy Court’s rulings on the Contract Claims that
had been adverse to the Group and affirming the Bankruptcy Court’s other rulings on the Contract Claims. In July 2012, the
SDNY Court issued an agreed judgement implementing the rulings in the opinion (Judgement). Under the Judgement, the
Group is entitled to receive:
? $1.1bn (£0.6bn) from the Trustee in respect of “clearance box” assets (Clearance Box Assets); and
? property held at various institutions in respect of the exchange traded derivatives accounts transferred to BCI
in the Sale (ETD Margin).
Recent Developments
The Trustee has appealed the SDNY Court’s adverse rulings to the Second Circuit. The current judgement is stayed pending
resolution of the Trustee’s appeal.
It appears that the Trustee may dispute the Group’s entitlement to certain of the ETD Margin even in the event the Group
prevails in the pending Second Circuit appeal. Moreover, there is uncertainty regarding recoverability of a portion of the ETD
Margin not yet delivered to the Group that is held by an institution outside the US. Thus, the Group cannot reliably estimate
how much of the ETD Margin the Group is ultimately likely to receive.
Claimed Amounts/Financial Impact
Approximately $4.3bn (£2.5bn) of the assets to which the Group is entitled as part of the Sale had not been received by 30
June 2014. Approximately $2.7bn (£1.6bn) has been recognised as a receivable on the balance sheet in respect of these
assets. The unrecognised amount, approximately $1.6bn (£1.0bn) as of 30 June 2014, effectively represents a provision
against the uncertainty inherent in the litigation and potential post-appeal proceedings and issues relating to the recovery
of certain assets held by an institution outside the US.
If the SDNY Court's rulings are unaffected by future proceedings, but conservatively assuming the Group does not receive
any ETD Margin that the Group believes may be subject to a post-appeal challenge by the Trustee or to uncertainty
regarding recoverability, the Group will receive assets in excess of the $2.7bn (£1.6bn) recognised as a receivable on the
Group's balance sheet as at 30 June 2014. The Group would then recognise a gain equal to such excess.
In a worst case scenario in which the Second Circuit reverses the SDNY Court’s rulings and determines that the Group is not
entitled to any of the Clearance Box Assets or ETD Margin, the Group estimates that, after taking into account its effective
provision, its total losses would be approximately $6bn (£3.5bn). Approximately $3.4bn (£2.0bn) of that loss would relate
to Clearance Box Assets and ETD Margin previously received by the Group and prejudgement and post-judgement interest
on such Clearance Box Assets and ETD Margin that would have to be returned or paid to the Trustee.
In this context, the Group is satisfied with the valuation of the asset recognised on its balance sheet and the resulting level
of effective provision.
Citibank Indemnity Action
On 11 March 2014, Citibank N.A. (Citi) and BBPLC settled an action brought by Citi under an indemnity provided by BBPLC
for losses incurred by Citi between 17 and 19 September 2008 in performing foreign exchange settlement services for LBI,
as LBI's designated settlement member with CLS Bank International.
American Depositary Shares
BPLC, BBPLC and various current and former members of BPLC's Board of Directors have been named as defendants in five
proposed securities class actions consolidated in the SDNY Court, alleging misstatements and omissions in registration
statements for certain American Depositary Shares offered by BBPLC.
Background Information
The consolidated amended complaint, filed in February 2010, asserted claims under the Securities Act of 1933, alleging that
registration statements relating to American Depositary Shares representing preferred stock, series 2, 3, 4 and 5 (Preferred
Stock ADS) offered by BBPLC at various times between 2006 and 2008 contained misstatements and omissions concerning
(amongst other things) BBPLC’s portfolio of mortgage-related (including US subprime-related) securities, BBPLC’s exposure
to mortgage and credit market risk, and BBPLC’s financial condition.

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Barclays PLC – 2014 Interim Results 84


Recent Developments
The claims concerning the series 2, 3 and 4 offerings have been dismissed on the basis that they were time barred.
Although the SDNY Court also dismissed the claims concerning the series 5 offering, the Second Circuit reversed the
dismissal and ruled that the plaintiffs should have been permitted to file a second amended complaint in relation to the
series 5 offering claims.
In June 2014, the SDNY Court denied defendants’ motion to dismiss with respect to the claims in the amended complaint
concerning the series 5 offering.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what
effect, if any, that they might have upon the Group’s operating results, cash flows or financial position in any particular
period.
Devonshire Trust
On 19 June 2014 BBPLC and Devonshire reached an agreement to settle proceedings brought before the Ontario Superior
Court in connection with BBPLC’s early terminations of two credit default swaps under an ISDA Master Agreement with the
Devonshire Trust (Devonshire). The Court previously determined that Devonshire was entitled to receive back from BBPLC
cash collateral of approximately C$533m together with accrued interest. The implementation of the settlement is subject to
certain conditions, including noteholder and Court approval. BBPLC had previously recognized an impairment provision in
relation to these swaps, and no incremental profit or loss for Barclays is expected as a result of this settlement.
BDC Finance L.L.C.
BDC Finance L.L.C. (BDC) filed a complaint against BBPLC in the NY Supreme Court alleging breach of a portfolio of total
return swaps governed by an ISDA Master Agreement (collectively, the Agreement). A ruling was made against BBPLC, but
an appeal is pending before the New York State Court of Appeals. Parties related to BDC have also sued BBPLC and BCI in
Connecticut state court in connection with BBPLC’s conduct relating to the Agreement.
Background Information
In October 2008, BDC filed a complaint in the NY Supreme Court alleging that BBPLC breached the Agreement when it
failed to transfer approximately $40m of alleged excess collateral in response to BDC’s October 2008 demand (Demand).
BDC asserts that under the Agreement BBPLC was not entitled to dispute the Demand before transferring the alleged
excess collateral and that even if the Agreement entitled BBPLC to dispute the Demand before making the transfer, BBPLC
failed to dispute the Demand.
BDC demands damages totalling $298m plus attorneys’ fees, expenses, and prejudgement interest.
In August 2012, the NY Supreme Court granted partial summary judgement for BBPLC, ruling that BBPLC was entitled to
dispute the Demand before transferring the alleged excess collateral, but determining that a trial was required to determine
whether BBPLC actually did so. The parties cross-appealed to the Appellate Division of the NY Supreme Court (NY Appellate
Division).
In September 2011, BDC’s investment advisor, BDCM Fund Adviser, L.L.C. and its parent company, Black Diamond Capital
Holdings, L.L.C. also sued BBPLC and BCI in Connecticut state court for unspecified damages allegedly resulting from
BBPLC’s conduct relating to the Agreement, asserting claims for violation of the Connecticut Unfair Trade Practices Act and
tortious interference with business and prospective business relations. The parties have agreed to a stay of that case.
In October 2013, the NY Appellate Division reversed the NY Supreme Court’s grant of partial summary judgement in favour
of BBPLC, and instead granted BDC’s motion for partial summary judgement, holding that BBPLC breached the Agreement.
The NY Appellate Division did not rule on the amount of BDC's damages, which has not yet been determined by the NY
Supreme Court.
Recent Developments
In January 2014 the NY Appellate Division granted BBPLC leave to appeal its October 2013 decision to the NY Court of
Appeals and the appeal is pending.


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Barclays PLC – 2014 Interim Results 85


Claimed Amounts/Financial Impact
BDC has made claims against the Group totalling $298m plus attorneys’ fees, expenses, and prejudgement interest. This
amount does not necessarily reflect the Group’s potential financial exposure if a ruling were to be made against it.
Credit Default Swap (CDS) Antitrust Investigations
The Commission and the DOJ-AD commenced investigations in the CDS market, in 2011 and 2009, respectively. In July
2013 the Commission addressed a Statement of Objections to BBPLC, 12 other banks, Markit Ltd. and ISDA. The case
relates to concerns that certain banks took collective action to delay and prevent the emergence of exchange traded credit
derivative products.
If the Commission does reach a decision in this matter it has indicated that it intends to impose sanctions. The
Commission’s sanctions can include fines. The DOJ-AD’s investigation is a civil investigation and relates to similar issues.
Barclays is also contesting a proposed, consolidated class action alleging similar issues that has been filed in the US.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the actions described on the Group or what
effect, if any, that they might have upon the Group’s operating results, cash flows or financial position in any particular
period.
Interchange Investigations
The Office of Fair Trading, as well as other competition authorities elsewhere in Europe, continues to investigate Visa and
MasterCard credit and debit interchange rates.
BBPLC receives interchange fees, as a card issuer, from providers of card acquiring services to merchants. The key risks
arising from the investigations comprise the potential for fines imposed by competition authorities, litigation and proposals
for new legislation.
Claimed Amounts/Financial Impact
It is not currently practicable to provide an estimate of the financial impact of the matters in this section or what effect, if
any, that these matters might have upon operating results, cash flows or the Group’s financial position in any particular
period.
Interest Rate Hedging Products Redress
See Note 11. Provisions for a description of the FSA’s review and redress exercise in respect of interest rate hedging
products and the provisions recognized by the Group in connection with it.
General
The Group is engaged in various other legal, competition and regulatory matters both in the UK and a number of overseas
jurisdictions. It is subject to legal proceedings by and against the Group which arise in the ordinary course of business from
time to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit,
fraud, trusts, client assets, competition, data protection, money laundering, employment, environmental and other statutory
and common law issues.
The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other
proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer
protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking and
business activities in which the Group is or has been engaged.
At the present time, the Group does not expect the ultimate resolution of any of these other matters to have a material
adverse effect on its financial position. However, in light of the uncertainties involved in such matters and the matters
specifically described in this note, there can be no assurance that the outcome of a particular matter or matters will not be
material to the Group’s results of operations or cash flow for a particular period, depending on, amongst other things, the
amount of the loss resulting from the matter(s) and the amount of income otherwise reported for the reporting period.

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The Group has not disclosed an estimate of the potential financial effect on the Group of contingent liabilities where it is not
currently practicable to do so or, in cases where it is practicable, where disclosure could prejudice the conduct of matters.
Provisions have been recognised for those cases where the Group is able to reliably estimate probable losses.



18. Related Party Transactions
Related party transactions in the period ended 30 June 2014 were similar in nature to those disclosed in the Group’s 2013
Annual Report. No related party transactions that have taken place in 2014 have materially affected the financial position or
the performance of the Group during this period and there were no changes in the related parties transactions described in
the 2013 Annual Report that could have a material effect on the financial position or performance of the Group in the
current financial year.

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19. Segmental Reporting
Analysis of results by business


Personal and
Corporate
Banking Barclaycard Africa Banking
Investment
Bank
Half Year Ended 30 June 2014

£m

£m £m £m
Total income net of insurance claims

4,361

2,124 1,773 4,257
Credit impairment charges and other provisions

(230)

(537) (196) 26
Net operating income

4,131

1,587 1,577 4,283
Operating expenses (2,554)

(822) (1,082) (2,943)
Costs to achieve Transform

(115)

(36) (17) (282)
Other net income
1
6

35 6 -
Profit before tax

1,468

764 484 1,058



£bn

£bn £bn £bn
Total assets

268.1

36.2 52.4 447.8

Analysis of results by business

Head Office

Barclays Core
Barclays Non-
Core
Barclays
Group
Half Year Ended 30 June 2014

£m

£m £m £m
Total income net of insurance claims

159

12,674 658 13,332
Credit impairment charges and other provisions

-

(937) (149) (1,086)
Net operating income

159

11,737 509 12,246
Operating expenses

(91)

(7,491) (893) (8,383)
Costs to achieve Transform (2)

(453) (41) (494)
Other net (expense)/income
1
-

47 (66) (20)
Profit/(loss) before tax

66

3,840 (491) 3,349



£bn

£bn £bn £bn
Total assets

41.7

846.2 468.6 1,314.9


Analysis of results by business


Personal and
Corporate
Banking

Barclaycard Africa Banking
Investment
Bank
Half Year Ended 31 December 2013

£m

£m £m £m
Total income net of insurance claims

4,418

2,084 1,984 3,633
Credit impairment charges and other provisions

(322)

(556) (205) (16)
Net operating income

4,096

1,528 1,779 3,617
Operating expenses

(2,772)

(934) (1,263) (3,215)
Costs to achieve Transform

(292)

(44) (17) (74)
Other net income
1
4

17 3 -
Profit before tax

1,036

567 502 328

£bn

£bn £bn £bn
Total assets

278.5

34.4 54.9 439.6

Analysis of results by business

Head Office

Barclays Core
Barclays Non-
Core
Barclays
Group
Half Year Ended 31 December 2013

£m

£m £m £m
Total income net of insurance claims

146

12,265 818 13,084
Credit impairment charges and other provisions

3

(1,096) (344) (1,440)
Net operating income

149

11,169 474 11,644
Operating expenses (101)

(8,285) (1,258) (9,543)
Costs to achieve Transform

(22)

(449) (120) (569)
Other net income
1
6

30 14 44
Profit/(loss) before tax

32

2,465 (890) 1,576

£bn

£bn £bn £bn
Total assets

25.0

832.4 511.2 1,343.6
1 Other income/(expense) represents: share of post-tax results of associates and joint ventures; profit or (loss) on disposal of subsidiaries, associates and
joint ventures; and gains on acquisitions.

Financial Statement Notes



Barclays PLC – 2014 Interim Results 88


Analysis of results by business


Personal and
Corporate
Banking

Barclaycard
Africa
Banking
Investment
Bank
Half Year Ended 30 June 2013

£m

£m £m £m
Total income net of insurance claims

4,305

2,019 2,055 5,222
Credit impairment charges and other provisions

(299)

(540) (274) 38
Net operating income

4,006

1,479 1,781 5,260
Operating expenses (2,754)

(874) (1,230) (3,193)
Costs to achieve Transform

(92)

(5) (9) (116)
Other net income
1
37

16 5 -
Profit before tax

1,197

616 547 1,951



£bn

£bn £bn £bn
Total assets

288.3

34.3 61.2 515.5

Analysis of results by business

Head Office

Barclays Core
Barclays
Non-Core
Barclays
Group
Half Year Ended 30 June 2013

£m

£m £m £m
Total income net of insurance claims

(4)

13,597 1,474 15,071
Credit impairment charges and other provisions

-

(1,075) (556) (1,631)
Net operating income

(4)

12,522 918 13,440
Operating expenses (41)

(8,091) (1,049) (9,141)
Costs to achieve Transform

-

(223) (418) (640)
Other net (expense)/income
1
(2)

56 (124) (68)
(Loss)/profit before tax

(47)

4,264 (673) 3,591



£bn

£bn £bn £bn
Total assets

45.6

944.9 623.0 1,567.9



Reconciliation of adjusted basis to statutory
basis


Barclays
Group

Adjusted
Own
credit
Provision
for PPI
redress
Provision for
interest rate
hedging products
Goodwill
Impairment
Barclays Group
Statutory
Half Year Ended 30 June 2014

£m

£m £m £m £m £m
Total income net of insurance claims

13,332

52 - - - 13,384
Credit impairment charges and other provisions

(1,086)

- - - - (1,086)
Net operating income

12,246

52 - - - 12,298
Operating expenses

(8,383)

- (900) - - (9,283)
Costs to achieve Transform

(494)

- - - - (494)
Other losses (20)

- - - - (20)
Profit/(loss)

3,349

52 (900) - - 2,501

Half Year Ended 31 December 2013

£m

£m £m £m £m £m
Total income net of insurance claims

13,084

(306) - - - 12,778
Credit impairment charges and other provisions

(1,440)

- - - - (1,440)
Net operating income

11,644

(306) - - - 11,338
Operating expenses

(9,543)

- - - (79) (9,622)
Costs to achieve Transform

(569)

- - - - (569)
Other income

44

- - - - 44
Profit/(loss)

1,576

(306) - - (79) 1,191



Half Year Ended 30 June 2013

£m

£m £m £m £m £m
Total income net of insurance claims

15,071

86 - - - 15,157
Credit impairment charges and other provisions

(1,631)

- - - - (1,631)
Net operating income

13,440

86 - - - 13,526
Operating expenses

(9,141)

- (1,350) (650) - (11,141)
Costs to achieve Transform

(640)

- - - - (640)
Other losses

(68)

- - - - (68)
Profit/(loss)

3,591

86 (1,350) (650) - 1,677











1 Other income/(losses) represents: share of post-tax results of associates and joint ventures; profit or (loss) on disposal of subsidiaries, associates and joint
ventures; and gains on acquisitions.

Shareholder Information



Barclays PLC – 2014 Interim Results 89


Results Timetable
1
Date




Ex-dividend date

6 August 2014

Dividend Record date

8 August 2014

Scrip reference share price set and made available to shareholders

13 August 2014

Cut off time of 4.30 pm (London time) for the receipt of Mandate Forms or
Revocation Forms (as applicable)

29 August 2014

Dividend Payment date /first day of dealing in New Shares

19 September 2014

Q3 2014 Interim Management Statement

30 October 2014








For qualifying US and Canadian resident ADR holders, the second interim dividend of 1p per ordinary share becomes 4p per ADS
(representing four shares). The ADR depositary will post the second interim dividend on 19 September 2014 to ADR holders on the record
at close of business on 8 August 2014.










Half Year

Half Year Half Year


Ended

Ended Ended Change Change


Exchange Rates
2
30.06.14

31.12.13 30.06.13 31.12.13 30.06.13
3

Period end - US$/£

1.71

1.65 1.52 4% 12%


Average - US$/£

1.67

1.58 1.54 5% 8%


3 month average - US$/£

1.68

1.62 1.54 4% 10%


Period end - €/£

1.25

1.20 1.17 4% 7%


Average - €/£

1.22

1.18 1.18 3% 3%


3 month average - €/£

1.23

1.19 1.18 3% 4%


Period end - ZAR/£

18.17

17.37 15.11 5% 20%


Average - ZAR/£

17.82

15.94 14.20 12% 26%


3 month average - ZAR/£

17.76

16.43 14.57 8% 22%







Share Price Data



30.06.14 31.12.13 30.06.13


Barclays PLC (p)

212.80 271.95 278.45


Barclays Africa Group Limited (formerly Absa Group Limited) (ZAR)



161.50 132.25 148.50









For Further Information Please Contact













Investor Relations

Media Relations

Charlie Rozes +44 (0) 20 7116 5752

Giles Croot +44 (0) 20 7116 6132








More information on Barclays can be found on our website: www.barclays.com


Registered Office
1 Churchill Place, London, E14 5HP, United Kingdom. Tel: +44 (0) 20 7116 1000. Company number: 48839
Registrar
The Registrar to Barclays, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA United Kingdom.
Tel: 0871 384 2055
4
from the UK or +44 121 415 7004 from overseas.





1 Note that these announcement dates are provisional and subject to change. Any changes to the Scrip Dividend Programme dates will be made available
at Barclays.com/dividends.
2 The average rates shown above are derived from daily spot rates during the year used to convert foreign currency transactions into Sterling for accounting
purposes.
3 The change is the impact to Sterling reported information.
4 Calls cost 8p per minute plus network extras. Lines open 8.30am to 5.30pm UK time, Monday to Friday excluding UK public holidays.

Shareholder Information



Barclays PLC – 2014 Interim Results 90


Listing
The principal trading market for Barclays PLC ordinary shares is the London Stock Exchange. Trading on the New York
Stock Exchange is in the form of ADSs under the ticker symbol 'BCS'. Each ADS represents four ordinary shares of 25p each
and is evidenced by an ADR. The ADR depositary is JP Morgan Chase Bank, whose international telephone number is +1-
651-453-2128, domestic telephone number is 1-800-990-1135 and address is JPMorgan Chase Bank, PO Box 64504, St.
Paul, MN 55164-0504, USA.
Barclays PLC Scrip Dividend Programme

Shareholders may have their dividends reinvested in Barclays shares by joining the Barclays PLC Scrip Dividend Programme
(the Programme). At the Barclays 2013 Annual General Meeting, shareholders approved the introduction of the
Programme to replace the Barclays Dividend Reinvestment Plan. The Programme enables shareholders, if they wish, to
receive new fully paid ordinary shares in Barclays PLC instead of a cash dividend, without incurring dealing costs or stamp
duty. The Programme was initially offered for the second interim dividend, paid on 13 September 2013, and for any
dividends paid thereafter (subject to the Directors making the Programme available for each dividend).

For further details, including the full Terms and Conditions and information about how to join or leave the Programme,
please visit Barclays.com/dividends or alternatively contact: The Registrar to Barclays, Aspect House, Spencer Road,
Lancing, West Sussex BN99 6DA United Kingdom, or by telephoning 0871 384 2055
1
from the UK or +44 121 415 7004
from overseas.

Global Systemically Important Institutions

Barclays is required by the PRA following an EBA request to publicly disclose the Global Systemically Important Institutions
template for the reporting period 31 December 2013. This will be available at: www.barclays.com/barclays-investor-
relations/investor-news.html on 31 July 2014.














































































1 Calls cost 8p per minute plus network extras. Lines open 8.30am to 5.30pm UK time, Monday to Friday excluding UK public holidays.

doc_885571614.pdf