Barclays Plc announces a half year dividend for 2022 of 2.25p per ordinary share that will be paid on 16 September 2022 to shareholders on the register on 12 August 2022.
Other Financial Highlights:
H122 performance:
Attributable profit was £2.5bn (H121: £3.8bn) and RoTE was 10.1% (H121: 16.1%) having reflected a £0.6bn net of tax impact for the Over-issuance of Securities in the US (Over-issuance of Securities3). Excluding this impact, RoTE was 12.5%
£0.6bn impact of Over-issuance of Securities is comprised of:
- £0.4bn post tax expected net impact of the rescission offer losses, driven by £1.3bn of costs as a result of market movements and interest, substantially offset by £0.8bn of income from hedging arrangements
- £0.2bn of costs relating to an estimated monetary penalty from the SEC
Excluding the impact of Over-issuance of Securities:
- Group income was £12.4bn, up 10% year-on-year, driven by strong client activity in Markets, recovery in both Consumer, Cards and Payments (CC&P) and Barclays UK offsetting the impact of a weak fee pool in Investment Banking
- Group costs were £7.7bn (H121: £7.2bn) including other litigation and conduct charges of £0.4bn (H121: £0.1bn), with operating costs (excluding litigation and conduct) up 2% year-on-year
On a statutory basis, including the impacts of Over-issuance of Securities:
- Group income was £13.2bn, up 17% year-on-year, including the £0.8bn of income from hedging arrangements related to the Over-issuance of Securities
- Credit impairment charges were £0.3bn (H121: £0.7bn net release) with provision levels broadly retained in light of an uncertain macroeconomic backdrop
Group costs were £9.1bn (H121: £7.3bn), including litigation and conduct charges of £1.9bn (H121: £0.2bn), including £1.5bn estimated impact of rescission offer losses in relation to the Over-Issuance of Securities and associated estimated monetary penalty from the SEC
Capital: Common Equity Tier 1 (CET1) ratio of 13.6% (December 2021: 15.1% and March 2022: 13.8%) and tangible net asset value (TNAV) per share of 297p (December 2021: 291p and March 2022: 294p)
Outlook:
- Returns: Barclays continues to target a RoTE of greater than 10% in 2022
- Income: Barclays' diversified income streams position the Group well for the current economic and market environment and rising interest rates
- Costs: given £1.3bn of litigation and conduct charges in Q222 and the appreciation of average USD against GBP, Barclays now expects FY22 total operating expenses to be around £16.7bn versus previous outlook of £15.0bn
- Impairment: while acknowledging macroeconomic uncertainty, the impairment charge is expected to remain below pre-pandemic levels in coming quarters given reduced unsecured lending balances and existing coverage ratios
- Capital: Barclays continues to target a CET1 ratio within the range of 13-14%
