Making a difference - Barclays

1 Making a differenceBarclays PLC Annual Report 2020 Part 1 Barclays is a British universal bank. We support consumers and small businesses through our retail banking services, and larger businesses and institutions through our corporate and investment banking services. In the wake of an extraordinary year, we have refreshed our corporate Purpose and our Values to ensure they are relevant to today s PurposeWe deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long ValuesRespect We harness the power of diversity and inclusion in our business, trust those we work with, and value everyone s We operate with honesty, transparency and fairness in all we We act with empathy and humility, putting the people and businesses we serve at the centre of what we We champion innovation, and use our energy, expertise and resources to make a positive We prize sustainability.

2 And are passionate about leaving things better than we found can read more about our new Purpose StakeholdersHaving a strong Purpose and Values ensures we are able to deliver for all our stakeholders:For our customers and clientsWe help those who use our products, services and expertise realise their aspirationsFor our colleaguesWe support their health and wellbeing, enable them to build their career, and empower and motivate them to be able to provide excellent serviceFor societyOur success over the long term is tied inextricably to the progress of our communities, and the preservation of our environmentFor our investorsWe continue to build a strong, diversified business that can deliver attractive and sustainable returnsMaking a differenceInside this bookStrategic reportUnderstanding BarclaysChairman s introductionChief Executive s reviewOperating environmentOur strategyOur business modelEngaging with our stakeholdersSection 172(1)

3 StatementKey performance indicators002004006009011014016018022 Making a difference for our customers and clients: Barclays UKBarclays International: Corporate and Investment BankBarclays International: Consumer, Cards and Payments026028030 Making a difference for our colleagues:Our people and culture033 Making a difference for society:Tackling climate changeSupporting our communities039042 Making a difference for our investors:Summary financial reviewManaging riskViability statementNon-financial information statement045048050052 Shareholder informationKey dates, Annual General Meeting, dividends, and other useful information054 Continued in Part 2 of the reportGovernance Governance contentsDirectors reportRemuneration report059060108 Risk reviewRisk review contents Risk management Material existing and emerging risks Climate change risk management Principal risk management Risk performance Supervision and regulation 143145147159161167233 Financial reviewFinancial review contents Key performance indicators Consolidated summary income statement Income statement commentary Consolidated summary balance sheet Balance sheet commentary Analysis of results by business Non-IFRS performance measures 239240242243244245246253 Financial statementsFinancial statements contents Consolidated financial statements Notes to the financial statements 259279286 The Barclays PLC Strategic Report 2020 was approved by the

4 Board of Directors on 17 February 2021 and signed on its behalf by the of the auditorThe Auditor s report on the Financial statements of Barclays PLC for the year ended 31 December 2020 was unmodified, and its statement under Section 496 of the Companies Act 2006 was also unmodified (see page 260 of Part 2 of the Annual Report 2020).Strategic reportShareholder information GovernanceRisk reviewFinancial reviewFinancial statements Barclays PLC 001 Barclays PLC Annual Report 2020 Understanding BarclaysWe are proud of our history and deep roots in the UK, while our scale, geographic reach and diversification make us a universal bank, delivering financial expertise in many different markets around the investment proposition 1 Resilience through diversification 2 Growth opportunities 3 Sustainable impact 4 Strong balance sheet supporting returnsWe are a British universal bank diversified by business, geography and income type, serving consumers and wholesale customers and clients globally.

5 This diversification provides resilience through different economic cycles. Scale retail and business bank in the UK. Top tier global corporate and investment bank. Broad international consumer lending, cards, and payments franchise, and private diversified model offers us growth opportunities. We intend to grow Barclays by continuing to invest in our core business strengths, and delivering world-class technology and digital capabilities to our customers and clients. Attractive growth opportunities in markets where we have established businesses today. Investing in less capital intensive, technology-led, annuity businesses. Opening up potential new income streams and improving cost efficiencies. We understand that our success is judged not only by commercial performance, but also by how we act sustainably and responsibly for each other and the long term.

6 We are agents of change. Our ambition to be a net zero bank by 2050 and a commitment to align all our financing activities with the goals of the Paris Climate Agreement. Tackling climate change by accelerating the transition to a low-carbon strong capital base, high levels of liquidity, and diversified profit streams provide a solid foundation for attractive and sustainable return of capital to aims to achieve the following targets: Group returns: return on tangible equity (RoTE) of >10% over time. Cost efficiency: cost: income ratio of <60% over time. Capital strength: Common Equity Tier 1 (CET1) ratio in the range of 13-14%.For further information on our diversified business, please see our divisional reviews on pages 25 to further information on growing our company, please see the Chief Executive s review on page further information on our approach to climate, please see how we act in our society and environment on pages 39 to further information on our performance in 2020, please see our summary financial review on pages 45 to PLC Barclays PLC Annual Report 2020 Strategic reportShareholder information GovernanceRisk reviewFinancial reviewFinancial statementsGroup income by business %Group income by region%Number of colleagues by business 000sNumber of colleagues by region 000s154610 Barclays UKPersonalBarclaycardBusiness BankingBarclays InternationalConsumer, Cards and PaymentsCorporate and Investment Bank.

7 Investment BankingCorporate Banking1676 Group income345529 United KingdomEuropeAmericasAsia Paci c Group UKCorporate and Investment BankConsumer, Cards and PaymentsBX and Head O KingdomEuropeAmericasAsia Pacific83kcolleaguesPercentages exclude Head Office which was a negative income of Execution (BX) and Head Office include our functions, technology and centralised support personnel supporting the client-facing businesses, reducing duplication and providing operational synergies. BX facilitates the sharing of expertise and ideas across the Group to allow us to bring our entire organisation to bear in delivering the right solutions for customers and clients, income generation demonstrates the range of retail and commercial products and services we culture of Barclays is built and shaped by the thousands of professionals around the world who serve our customers and profit before taxa bnEarnings per shareapCommon Equity Tier 1 ratio%Total capital distribution per share pBarclays UK and Barclays International statutory profit before tax (PBT) was and ( ) ( ) ( )( ) UKCorporate and Investment BankConsumer, Cards and PaymentsHead O cea Excluding litigation and conduct.

8 Including litigation and conduct, PBT was (2019: , 2018: ).The diversification of the Group helps support sustainable earnings through the cycle, as seen during Excluding litigation and conduct. Statutory earnings per share (EPS) were (2019: , 2018: ). Our CET1 ratio demonstrates resilience and provides a solid foundation for shareholder Although we declared a 9p dividend for 2019, the full year dividend of 6p was cancelled in response to a request from the are pleased to approve a total payout of per share, including a 2020 full year dividend and the intention to initiate a share buyback of up to Barclays continuedSee our business model on page 14 for an overview of our customer base and our diverse range of products and at a glanceStrategic reportShareholder information GovernanceRisk reviewFinancial reviewFinancial statements Barclays PLC 003 Barclays PLC Annual Report 2020 For most people, and indeed companies, the defining memory of 2020 will be the COVID-19 pandemic.

9 Which is of course still with us and has had such devastating consequences for the lives and livelihoods of millions around the the pandemic unfurled, Barclays priorities were clear. We first needed to ensure our operational and financial resilience, not least because banks would be called upon to play a key role in mitigating some of the financial and economic consequences of the crisis. That resilience then had to be put to real use in supporting our customers and clients. And we needed to do this while protecting the health and wellbeing of our many thousands of employees. We have been fortunate in pursuing those priorities to have the commitment of so many dedicated and resilient colleagues. While many switched to working from home with remarkable adaptability, I would like to record particular thanks to the thousands who continued to work in branches, looked after clients from the trading floors, and staffed our contact centres so as to deal with a significantly heightened volume of questions from customers.

10 It has been fantastically uplifting to witness the spirit in which our colleagues have taken on these challenges. Of course, our workforce was not immune to the worst health impacts of the virus either. For those colleagues we have lost or who suffered personally, or whose families have been affected, I extend my deepest s introductionThis year has taught us some valuable lessons, and underlined the importance of purpose in everything we do. Our strategy is working and we are confident Barclays is in a strong position for the challenges and opportunities during the pandemicRevisiting our PurposeDuring the course of the last year, we revisited our expression of Purpose with a view to improving its connectivity to the actual things that we do day-in and day-out. Our commitment now is to deploy finance responsibly to support people and businesses, acting with empathy and integrity, championing innovation and sustainability, for the common good and the long term.