Barclays H1 2022 Results

Q222 Barclays UK ROTE of 18.4% reflecting higher rates, with Q222 NIM of 2.71% Income £1.7bn Q221: £1.6bn Costs £1.1bn Q221: £1.1bn Cost: income Impairment ratio 64% Q221: 68% Q221: £(0.5)bn release Loan loss rate n/a Q221: n/a PBT £0.6bn Q221: £1.0bn Average ROTE 18.4% Q221: 29.1% Loan: deposit ratio equity¹ £10.0bn Q221: £9.9bn RWAs £72.2bn 85% Mar-22: 85% Mar-22: £72.7bn Income up 6% capturing the benefit from rising interest rates NIM increased 9bps QoQ to 2.71% driven by higher rates, partially offset by mortgage margin compression FY22 NIM expected to be between 2.80%- 2.90%² Costs broadly flat driven by efficiency savings, offset by increased investment spend and inflationary pressures Nil impairment charge reflecting low flows to delinquency, lower UK unemployment, with reduced uncertainty around COVID-19 impacts offset by customer vulnerability to high inflation Loans³ decreased £1.4bn QoQ - Growth in mortgages (£0.5bn) and cards (£0.4bn) Reduction in business banking of £2.4bn, primarily due to lower ESHLA4 portfolio carrying value and continued repayment of government lending schemes Customer deposits 5 increased c. £1bn QoQ maintaining a strong loan: deposit ratio of 85% Q221 Q321 Q421 Q122 Q222 Total income (Em) 1,623 1,638 1,699 1,649 1,724 318 335 386 310 331 1,303 1,305 1,313 1,339 1,393 Non-interest income Net interest margin (NIM) 2.55% 2.49% 2.49% 2.62% 2.71% Costs (Em) 1,097 1,243 1,051 1,007 1,101 137 48 Impairment (Em) (520) (59) Loans³ (£bn) 208 209 209 207 206 Customer deposits 5 (£bn) 256 257 261 260 262 1 Average allocated tangible equity | 2 Assumes the UK base rate increases to 2.50% by the end of 2022 | 3 Loans and advances at amortised cost | 4 Education, Social Housing and Local Authority | 5 Customer deposits at amortised cost | 23 | Barclays H1 2022 Results | 28 July 2022 BARCLAYS

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