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19th February 2021
Jes Staley, Barclays Bank Group Chief Executive Officer, comments on 2020 financials
"In a year in which the COVID-19 pandemic affected people across the globe, 2020 demonstrated our strengths, our values, and our resilience.
Throughout the pandemic we have focussed on preserving the financial and operational integrity of the firm so that we can maximise our support for clients and customers, for colleagues, and for the communities in which we live and work.
In the past year, we have helped companies to raise around £1.5tn through the global capital markets, extended around £27bn to businesses through UK government lending schemes, provided over 680k payment holidays to customers, waived around £100m of interest and fees, and committed £100m to charities through our COVID-19 Community Aid Package.
2020 demonstrated the value of our diversified banking model, delivering resilient Group results even in a difficult macroeconomic period, driven by the performance of our CIB.
Total income increased to £21.8bn. Within Barclays International, CIB income was up 22%, while CC&P income was down 22%. In Barclays UK, income was down 14%.
Pre-provision profits were broadly stable at £8.1bn. However, impairment charges, maintaining our cautious view of the impact of the pandemic, totalled £4.8bn. The fourth quarter impairment charge of c.£500m was however down 19% from the previous quarter.
Group profit before tax was £3.1bn for the year, and we remained profitable in every quarter, including generating profit before tax of £646m in the fourth quarter.
CIB income was £12.5bn, with both Markets and Banking achieving their best ever income performance4, up 45% and 8% respectively. Corporate income was down 13%, including the impact of lower interest rates. Overall, profit before tax in the CIB increased 35% to £4bn.
Our CC&P business made a loss before tax of £388m for the full year due to impairment charges, despite returning to profit in the third and fourth quarters.
Barclays UK profit before tax, excluding litigation and conduct, decreased 78% to £578m, including £278m in the fourth quarter, reflecting the impact of the COVID-19 pandemic driving higher impairment.
Group costs, excluding litigation and conduct, rose 1% to £13.7bn which included structural cost actions, leading to a cost to income ratio of 63%.
Group RoTE was 3.2%, including 9.5% for the CIB,(7.5%) for CC&P, and 3.2% for Barclays UK. Earnings per share were 8.8p.
Our CET1 capital ratio increased 50bps in the quarter, and 130bps in the year to 15.1%, significantly ahead of our minimum requirement.
Given the strength of our business, we have decided the time is right to resume capital distributions. We have announced a total payout equivalent to 5p per share, comprising a 1p 2020 full year dividend and the intention to initiate a share buyback of up to £700m. We expect to comment further on capital distributions when appropriate.
Barclays remains well capitalised, well provisioned for impairments, highly liquid, with a strong balance sheet, and competitive market positions across the Group. We expect that our resilient and diversified business model will deliver a meaningful improvement in returns in 2021."
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