Barclays H1 2022 Results
Mortgage growth continues, well positioned for rising rates
150
125
100
75
Indexed card spending data¹
UK debit and
credit cards
UK credit cards
Mortgages
US credit cards
148
BUK: Mortgage
balances (£bn)
143.3 148.3
155.2 158.1 159.1 159.6
23
Dec-19 Dec-20 Jun-21 Dec-21 Mar-22 Jun-22
94
50
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Credit cards
Strong mortgage flow from new applications, with net balances up £0.5bn
QoQ and £4.4bn YoY in Q222
Q222 margins have reduced from the levels seen in FY21
Group NII interest rate sensitivity
BUK: UK cards
End Net
Receivables
(£bn)
CC&P: US cards
End Net
Receivables
($bn)
15.9
11.2
9.6
9.5
9.2
9.6
Illustrative Group income
impact from a 25bps upward
parallel shift in interest rate
curves² (Em)
Year 1
Year 2
Year 3
C.225
Dec-19 Dec-20 Jun-21 Dec-21 Mar-22 Jun-22
27.1
21.0
20.1
22.2
21.9
26.2
Dec-19 Dec-20 Jun-21 Dec-21 Mar-22 Jun-22
Balances up QoQ with recovery in spending expected to support unsecured
lending balances
Completion of GAP portfolio acquisition added $3.3bn of balances to US
cards
•
Expect income headwinds from higher acquisition costs as new accounts
and balances grow, particularly in the US
C.375
C.525
Barclays is well positioned for a rising rate environment given significant
deposit balances
The scenario above assumes a 25bps parallel shift in interest rates, with the
additional benefit in years 2 and 3, primarily reflecting the structural hedge
being reinvested in higher yielding swaps
Around two thirds of the Group income benefit from the illustrative 25bps
upward parallel shift is in BUK, with the remaining in Bl
Given recent moves in the yield curve and the increase in hedge notional, the
structural hedge contribution in FY22 is currently expected to be materially
higher than in FY21
34 | Barclays H1 2022 Results | 28 July 2022
1 UK debit and credit cards data based on Barclays debit and credit cards transactions, as per the monthly Barclays UK Consumer Spending Report. UK credit cards spend excludes balance transfers | 2 See slide 36 for more details |
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