H121 performance reflects continued benefits of diversification during the pandemic and net impairment releases
Diversified model provides resilience through economic cycles
Barclays continues to support client activity in capital markets
Signs of consumer spending recovery during Q221 driven by lockdown easing while mortgage activity remained robust
Ambition in Payments of c.£900m income growth over three years
Environmental and Social stewardship central to our strategy
Strong H121 profitability, increased capital distributions to shareholders
Income: Ongoing benefits from business diversification, with lower YoY CIB offset by partial recovery in consumer businesses
Unsecured lending remains subdued, despite the recent recovery in spend, while mortgage performance remains strong
Costs: Q221 YoY increase driven by structural cost actions of £0.3bn, predominantly relating to the real estate review
H121 structural cost actions primarily related to the real estate charge taken in Q221
FY21 costs, excluding structural cost actions and performance costs, expected to be broadly in line with FY20 at c.£12bn
Impairment: Q221 net release of £0.8bn, due to improved macro outlook, lower unsecured balances and benign credit environment
Improved macroeconomic variables drove the impairment release
Jun 21 coverage ratios in unsecured and wholesale loans remain above pre pandemic levels given ongoing uncertainty
Q221 Barclays International
Q221 Barclays International: Corporate & Investment Bank
Q221 Barclays International: Consumer, Cards & Payments
CET1 ratio increased to 15.1% driven by profits and lower RWAs
CET1 ratio target range continues to be 13 14%, but expect to remain above that in 2021
High quality and robust liquidity and funding positions
Outlook: Barclays continues to benefit from diversification