Edgar Filing: BARCLAYS PLC

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934

7 August 2003

Barclays PLC and
Barclays Bank PLC
(Names of Registrants)

54 Lombard Street
London EC3P 3AH
England
(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

This Report is a joint Report on Form 6-K filed by Barclays PLC and Barclays Bank PLC. All of the issued ordinary share capital of Barclays Bank PLC is owned by Barclays PLC.

This Report comprises:


	Information given to The London Stock Exchange and furnished pursuant to General Instruction B to the General Instructions to Form 6-K.

TABLE OF CONTENTS


Table of Contents
Signatures
Barclays PLC — Interim Results
Barclays Bank PLC — Interim Results

TABLE OF CONTENTS

Table of Contents

Signatures

Barclays PLC — Interim Results

Barclays Bank PLC — Interim Results

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each of the registrants has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


		BARCLAYS PLC (Registrant)


Date: August 7, 2003		By: /s/ Simon Pordage Simon Pordage Head of Board Support


		BARCLAYS BANK PLC (Registrant)


Date: August 7, 2003		By: /s/ Simon Pordage
		Simon Pordage Head of Board Support


	Barclays PLC
30th June 2003
	Interim Results Announcement

IFC

Barclays PLC

Interim Results Announcement 2003

BARCLAYS PLC

INTERIM ANNOUNCEMENT OF RESULTS FOR 2003

The statutory consolidated Profit and Loss account and consolidated Balance Sheet are set out on pages 13 and 14 in the format used in the Group’s 2002 Annual Report. Barclays believes that the Further Analysis of the Profit and Loss account shown on page 15 assists in the understanding of profit trends in the results.

In this document the profit and loss analysis compares, unless stated otherwise, the half-year to 30th June 2003 to the corresponding period of 2002. Balance sheet comparisons, unless stated otherwise, relate to the corresponding position at 31st December 2002. Average balance sheet comparisons relate the half-year to 30th June 2003 to the corresponding period of 2002. The prior period presentation has, where appropriate, been restated to conform with current year classification and the changes in accounting policies as described in the 2002 Annual Report.


	PAGE

Summary		1
Financial highlights		4
Half-year review		5
Key facts		8
Group performance management		9
Summary of results		12
Consolidated profit and loss account		13
Consolidated balance sheet		14
Further analysis of profit and loss account		15
Financial review		16
Additional information		50
Notes		52
Consolidated statement of changes in shareholders’ funds		62
Statement of total recognised gains and losses		63
Average balance sheet and net interest income		64
Summary consolidated cashflow statement		66
Other information		67
Index		68

The information in this announcement, which was approved by the Board of Directors on 6th August 2003, does not comprise statutory accounts within the meaning of Section 240 of the Companies Act 1985 (the “Act”). Statutory accounts for the year ended 31st December 2002 including the Group’s Annual Report on Form 20-F to the US Securities and Exchange Commission, which contained an unqualified audit report under Section 235 of the Act and did not make any statements under Section 237 of the Act, have been delivered to the Registrar of Companies in accordance with Section 242 of the Act.

This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and Section 27A of the US Securities Act of 1933, as amended, with respect to certain of the Group’s plans and its current goals and expectations relating to its future financial condition and performance. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as “anticipate”, “target”, “expect”, “estimate”, “intend”, “plan”, “goal”, “believe”, or other words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, UK domestic and global economic and business conditions, market related risks such as changes in interest rates and exchange rates, the policies and actions of governmental and regulatory authorities, changes in legislation and the impact of competition, a number of which are beyond the Group’s control. As a result, the Group’s actual future results may differ materially from the plans, goals, and expectations set forth in the Group’s forward-looking statements. Any forward-looking statements made by or on behalf of Barclays speak only as of the date they are made. Barclays does not undertake to update forward-looking statements to reflect any changes in Barclays expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures that Barclays has made or may make in documents it has filed or may file with the US Securities and Exchange Commission.

BARCLAYS PLC, 54 LOMBARD STREET, LONDON EC3P 3AH, TELEPHONE 020 7699 5000, COMPANY NO. 48839.

7th August 2003

BARCLAYS PLC — SUMMARY

RESULTS FOR SIX MONTHS TO 30TH JUNE 2003 (UNAUDITED)

Operating Results


	Half-year ended

	30.06.03			30.06.02			% Change
	£m			£m

Operating income		5,993			5,734			5
Operating expenses¹		(3,166	)		(3,046	)		4
Provisions for bad and doubtful debts		(652	)		(713	)		(9	)
Operating profit¹		2,188			1,972			11
Profit before tax		1,963			1,755			12
Economic profit		742			654			13

Earnings per share		21.3p			18.6p			14
Dividend per share		7.05p			6.35p			11
Post-tax return on average shareholders’ funds		18	%		17	%

“Barclays delivered a good first half performance, demonstrating that our strategy to transform the bank is on track and gathering momentum. We have seen good revenue growth, tight cost discipline and prudent risk management. At the same time we are continuing to fund investment for the future.”

Matthew W. Barrett, Group Chief Executive

Financial Summary

•		Operating income increased 5% to £5,993m (2002: £5,734m).

•		Operating expenses¹ rose 4% or £120m to £3,166m (2002: £3,046m), with the majority (£109m) of the increase attributable to the move to a pensions charge (£73m) from a pensions credit (£36m) in the first half of 2002.

•		The cost:income ratio was maintained at 53% (2002: 53%).

•		Provisions fell 9% to £652m (2002: £713m). Provisions, excluding the impact of South American Corporate Banking rose 6% to £643m (2002: £609m).

•		Operating profit¹, rose 11% to £2,188m (2002: £1,972m).

•		Profit before tax rose 12% to £1,963m (2002: £1,755m).

•		Post-tax return on average shareholders’ funds was 18% (2002: 17%).

•		Earnings per share rose 14% to 21.3p (2002: 18.6p). The interim dividend per share increased by 11% to 7.05p (2002: 6.35p).

•		In the first half of 2003, Barclays repurchased shares to the value of £119m and distributed £787m through the final dividend for 2002.

•		Equity shareholders’ funds were £16.1bn at 30th June 2003 (31st December 2002: £15.2bn). The tier 1 capital ratio strengthened to 8.4% (31st December 2002: 8.2%). The average economic capital (excluding goodwill) to support the Group’s ongoing business requirements was approximately £10.7bn (31st December 2002: £10.3bn).

Based on the consolidated profit and loss account, as defined for statutory purposes and shown on page 13, adjusted for the costs directly associated with the integration of Woolwich plc, goodwill amortisation and the restructuring charge. Additionally operating profit includes the profit/(loss) from joint ventures and associated undertakings prior to the amortisation of related goodwill. A profit and loss account presentation reflecting these adjustments is on page 15.

BARCLAYS PLC — SUMMARY

Business Performance Summary¹

•		Personal Financial Services increased operating profit 12% to £534m (2002: £475m). Income was up 6% at £1,524m (2002: £1,436m). Costs rose 5% to £829m (2002: £789m). The cost:income ratio improved to 54% (2002: 55%). Provisions were down 6% at £163m (2002: £173m). Stronger volumes and active margin management helped drive improvements in income. This was broadly based with revenue growth evident across the major business activities: general insurance up 21%; consumer finance up 14%; mortgages up 12%; and, current account and savings up 5%. In mortgages, margins improved relative to the first half of 2002. The share of net new lendings in the UK was 3% (2002: 11%). The number of Openplan customers in the UK grew to 2.4 million. Barclays branded savings maintained a leading market position in new business generation.

•		Barclays Private Clients operating profit, for the ongoing business, decreased 28% to £177m (2002: £246m), with activity impacted by significantly lower equity markets and by lower interest rates than in the first half of 2002. Comparisons year-on-year are impacted by several transactions that affected the structure of the business. Fees and commissions income fell 26%. Costs fell 11% to £430m (2002: £484m). The performance in Spain continued to be strong with income growth of 27% and a 129% increase in Openplan mortgage and deposit balances. The contribution from the closed life assurance activities, reported separately within Barclays Private Clients, was a loss of £46m (2002: loss £26m).

•		Barclaycard increased operating profit 22% to £381m (2002: £312m) with strong business volumes driving income growth of 17% to £878m (2002: £751m). Costs rose 14% to £292m (2002: £256m) reflecting business growth. The cost:income ratio improved to 33% (2002: 34%). Provisions increased 13% to £205m (2002: £181m) in line with growth in the portfolio. Average UK extended credit balances grew 16% to £7.2bn (2002: £6.2bn). Barclaycard International made a profit of £1m (2002: loss £15m) on income growth of 45% and average extended credit balances which were 41% higher. In the first half of 2003, 651,000 customers (2002: 540,000) were recruited. Monument (formerly Providian UK), acquired in April 2002, has been integrated into Barclaycard.

•		Business Banking increased operating profit 5% to £674m (2002: £643m) reflecting volume growth and the benefits of tight cost management. Income grew 5% to £1,287m (2002: £1,224m), notwithstanding the impact of the implementation of the Competition Commission Inquiry transitional pricing remedy. Costs grew 1%, to £504m (2002: £498m). The cost:income ratio improved to 39% (2002: 41%). Provisions rose 38% to £110m (2002: £80m), the increase being substantially attributable to provisions in respect of a small number of larger companies, with no particular industry concentration. The quality of the portfolio by risk grade remained stable. Average lending balances increased 11% to £46.1bn and average deposit balances increased 4% to £45.3bn.

•		Barclays Africa operating profit rose 31% to £63m (2002: £48m). The acquisition of BNPI Mauritius, completed in November 2002, made a positive contribution.

The Business Performance Summary is based on statutory definitions but with costs adjusted for those directly associated with the integration into the Barclays Group of Woolwich plc, goodwill amortisation and the restructuring charge. Additionally, operating profit includes the profit/(loss) from joint ventures and associated undertakings prior to amortisation of related goodwill. Further business analysis on this basis appears on pages 32-44.

BARCLAYS PLC — SUMMARY

Business Performance Summary (continued)

•		Barclays Capital operating profit increased 14% to £420m (2002: £370m). Operating income grew 7% to a record £1,308m (2002: £1,224m). Market risk was maintained at a level similar to the prior period, with an average Daily Value at Risk (DVaR) of £23m (2002: £22m). Costs rose 8% as revenue related costs increased consequent on strong performance. Provisions declined 14% reflecting improvements in the credit environment, particularly in the US. Barclays Capital improved market share, progressing to 4th in the global all debt league table with over $100bn of debt issued for clients in the first half of 2003.

•		Barclays Global Investors operating profit increased 52% to £91m (2002: £60m). Income increased 8% to £311m (2002: £289m) reflecting asset growth, investment performance and higher margin product sales. Costs were down 4% at £220m (2002: £229m). Total assets in the Global iShares (Exchange Traded Funds) business grew 27% to £28bn (31st December 2002: £22bn). Total assets under management were £543bn (31st December 2002: £462bn) inclusive of £34bn of new funds acquired during the first half of the year.

Progress against goals

•		Barclays continued to meet its primary goal, of top quartile total shareholder return relative to its peer group, for the three and a half years ended 30th June 2003.

•		Cumulative economic profit for the three and a half years ended 30th June 2003 was £4.6bn relative to the goal of £5.1bn. The cumulative goal for the period 2000 to 2003 inclusive is £6.1bn.

•		Cumulative annual cost savings for the three and a half years ended 30th June 2003 were £1,070m and have exceeded the £1bn targeted cost savings set for the end of 2003.

•		For the half-year ended 30th June 2003, ongoing Woolwich integration synergies of £159m were achieved relative to a target of £330m for 2003. Barclays remains on track to achieve the target synergies of £400m per annum by the end of 2004.

BARCLAYS PLC

FINANCIAL HIGHLIGHTS (UNAUDITED)


	Half-year ended

	30.06.03			31.12.02			30.06.02
RESULTS ¹	£m			£m			£m

Net interest income		3,236			3,072			3,133
Non-interest income		2,757			2,521			2,601
Operating income		5,993			5,593			5,734
Operating expenses		(3,166	)		(3,057	)		(3,046	)
Provisions for bad and doubtful debts		(652	)		(771	)		(713	)
Provisions for contingent liabilities and commitments		—			(2	)		1
Profit/(loss) from joint ventures and associated undertakings		13			(6	)		(4	)
Operating profit		2,188			1,757			1,972
Restructuring charge		(74	)		(132	)		(55	)
Woolwich integration costs		(22	)		(48	)		(32	)
Goodwill amortisation		(128	)		(124	)		(130	)
Exceptional items		(1	)		(3	)		—
Profit before tax		1,963			1,450			1,755
Profit attributable to shareholders		1,383			993			1,237
Economic profit		742			583			654
BALANCE SHEET
Shareholders’ funds		16,064			15,205			15,091
Loan capital		12,553			11,537			10,985
Total capital resources		28,810			26,898			26,200
Total assets		446,731			403,066			389,708
Weighted risk assets		181,414			172,748			165,168
PER ORDINARY SHARE		p			p			p
Earnings (on a statutory basis)		21.3			15.1			18.6
Earnings (on an operating profit basis) ¹		24.3			18.9			21.4
Dividend		7.05			12.00			6.35
Net asset value		245.4			231.2			227.5
PERFORMANCE RATIOS		%			%			%
Post-tax return on average shareholders’ funds (on a statutory basis)		17.6			13.0			16.5
Post-tax return on average shareholders’ funds (on an operating profit basis) ¹		20.0			16.1			18.9
CAPITAL RATIOS		%			%			%
Tier 1 ratio		8.4			8.2			7.9
Risk asset ratio		13.2			12.8			12.9
GROUP YIELDS, SPREADS & MARGINS		%			%			%
Gross yield		5.00			5.22			5.48
Interest spread		2.37			2.32			2.52
Interest margin		2.66			2.66			2.84
ECONOMIC DATA
Period end — US$/£		1.65			1.61			1.52
Average — US$/£		1.61			1.50			1.44
Period end — ¤/£		1.44			1.54			1.55
Average — ¤/£		1.46			1.59			1.61
FTSE 100 period end		4,031			3,940			4,656
Average FTSE 100 in period		3,844			4,085			5,126

Based on the Further Analysis of the Profit and Loss account as set out on page 15.

BARCLAYS PLC

HALF-YEAR REVIEW

The environment in 2002 was tough for financial services companies globally. At the start of 2003, there were no clear indications that the geopolitical or macroeconomic climate would become materially easier. However, there has been some progress in several areas; the war with Iraq has been largely resolved and fears of a double dip recession in the US have abated. On the other hand economic growth prospects across Europe remain subdued and, if anything, have deteriorated somewhat.

Against this backdrop, the UK economy has remained relatively robust, with GDP growth forecast to be just under 2% for this year. Notwithstanding moderating house price inflation, customer confidence remains high as a result of historically low levels of interest rates and unemployment.

Overall, whilst the remainder of 2003 still has its uncertainties, the outlook is generally more stable than at the start of the year.

Barclays approach in 2003 is unchanged from 2002: the pursuit of income growth; tight cost management; a prudent approach to risk management; a focus on generating profitable business; and a relentless drive to transform our businesses.

We continue to make progress in executing our strategic agenda and have been rewarded with good momentum in financial performance across most of our businesses.

Profit before tax increased by 12% to £1,963m (2002: £1,755m). Post-tax earnings per share rose 14% to 21.3p (2002: 18.6p). We have increased the interim dividend by 11% to 7.05p (2002: 6.35p).

Our economic profit¹ performance during the first half was sufficient to ensure that we continued to achieve our primary goal, which is to produce top quartile total shareholder return. Economic profit for the half-year was 13% higher at £742m (2002: £654m). On a cumulative basis, economic profit for the three and a half-year period to 30th June 2003 was £4.6bn — the strongest in Barclays history — although our economic goal for 2000-2003 inclusive required a cumulative £5.1bn at this stage.

In the first half of 2003, income increased by 5% to £5,993m (2002: £5,734m). Costs² for the first half were £3,166m, an increase of 4%. The increase included the impact of the half-on-half move to a pensions charge of £73m from a pensions credit of £36m in the equivalent period in 2002, which alone accounted for over 3% of the rise in costs.

Provisions fell by 9% to £652m (2002: £713m). Excluding the impact of South American Corporate Banking half-on-half, provisions rose 6%, well below loan growth of 9%.

There are three main themes driving our financial performance: income growth and the associated risk appetite; productivity improvements; and the execution of strategic priorities.

Income growth of 5% was well diversified across the portfolio and was achieved without increasing risk appetite. Net revenue, comprising operating income less provisions, increased 6%.

1		Economic profit is defined in note 2 on page 9.

2		Based on the Further Analysis of the Profit and Loss account set out on page 15.

BARCLAYS PLC

HALF-YEAR REVIEW

At a business level, we have delivered improved income growth in Personal Financial Services, up 6% at £1,524m (2002: £1,436m). This largely reflects the early benefits of increased volumes acquired during 2002. Income increased in general insurance and consumer finance, rising by 21% and 14% respectively, more than offsetting the decline in income from the IFA operation which remained subdued given poor stockmarket conditions. Mortgage income rose 12%. Openplan continued to be a powerful tool in attracting new business and strengthening relationships with existing customers.

Business Banking is experiencing the first year of impact of the Competition Commission Inquiry transitional pricing remedy. Business Banking responded proactively by consulting with the relevant customers and, based on the insights gained, offered them a choice of either interest on current account or a discounted money transmission package. During the first half of the year, we have recruited new customers and transacted more business with existing customers. Income in Business Banking rose 5%.

Our businesses which target global or regional markets, as well as the home UK market, did well. Barclaycard income growth was 17%. This was the seventh consecutive half-year of record income. An important feature of this has been the rapid development of Barclaycard International and we will continue to extend the Barclaycard brand and technologies into new geographies.

Barclays Capital had a record half-year; income rose 7% to £1,308m and operating profit grew 14% to £420m. Barclays Capital market share in core markets also grew as clients continued to respond positively to its integrated risk management and financing business model. Income growth at Barclays Capital was achieved with little change in market risk; average DVaR was £23m, broadly stable relative to 2002. Investment continued, focused on origination and distribution capabilities in the US and continental Europe. Barclays Capital remains one of the international growth engines for Barclays.

In Barclays Private Clients, business performance continued to reflect volatile equity markets, falling interest rates and the on-going challenge of managing the closed life assurance activities. Despite the difficult conditions, wealth management presents attractive opportunities and remains a key strategic priority for us. The continued reshaping of the business, headed by a new leadership team, will position us to tap into the substantial wealth management profit pools and to take advantage of the market turnaround when it occurs. We continued to invest in the business.

Barclays Global Investors income grew 8% (or 19% in dollar terms). Its excellent investment performance record in all asset classes over the short, medium and long term, combined with systematic risk control, is a winning formula.

Barclays Africa has continued to reshape its business around serving its customers in a distinctive way and has been rewarded with a 31% increase in operating profit helped by income growth of 18%. This has been achieved when often both the economic and political environments were difficult.

As we have grown income, we have maintained our focus on improving productivity. We set a goal at the end of 1999 to deliver £1bn of annual run-rate cost savings within four years. We have exceeded this goal within three and a half years, with £1,070m of savings achieved. The cost reduction initiative was not a one-off exercise, but very much part of our transformation programme. We know there are more gains to be captured through on-going productivity management; this continues to be an important agenda item for our business leaders. Each of our businesses is committed to achieving, and then at least maintaining, cost:income ratios in the top quartile of their peer group.

BARCLAYS PLC

HALF-YEAR REVIEW

Four businesses, Barclaycard, Business Banking, Barclays Africa and Barclays Capital, had top quartile cost:income performances by the end of 2002. Barclays Global Investors achieved top quartile performance for the first time during the first half of 2003. Personal Financial Services is committed to closing the gap between its performance (54%) and top quartile (51%). Barclays Private Clients remains challenged in achieving a top quartile ratio, largely a function of a fall in income rather than productivity.

Overall, we achieved a positive margin of income growth over cost growth of 1% (or 4% if the impact of the move from a pension credit in 2002 to a pension charge in 2003 is excluded). The Group cost:income ratio was maintained at 53%.

Our strategic priorities — remain unchanged and focus on those markets where we can most profitably implement our sources of competitive advantage: UK banking; businesses where we can benefit from global or regional economies of scale (such as cards, investment banking and institutional money management); retail and corporate banking in Europe; and wealth management in the UK and Europe. We also continue to work hard on improving the functional expertise, infrastructure and management disciplines that contribute to delivering good execution.

In addition to the opportunities for growth within each line of business, we believe that there are incremental value opportunities available to the Group by exploiting synergies between different parts of the portfolio. A good example is the synergy potential between Barclays Capital and Barclays Private Clients, where the sharing of product understanding, distribution capability and intellectual capital is already showing real benefits. We are also achieving benefits from working together across our core UK businesses — Personal Financial Services, Business Banking, Barclaycard UK, and UK Premier Banking in Barclays Private Clients.

The corporate development agenda is also an important element in delivering our goals. We completed in July our purchase of Banco Zaragozano in Spain, which we see as an important part of extending our retail and commercial banking activities in Western Europe. In January, we purchased Charles Schwab Europe (now part of Barclays Private Clients) and in May 2003 we bought Clydesdale Financial Services, a point of sale credit provider (now part of Barclaycard). Monument (formerly Providian UK) which was acquired in April 2002, has been integrated into Barclaycard. We regard these acquisitions as attractive ways to accelerate the implementation of our business strategies.

Barclays has delivered a good set of results across its portfolio in the first half of 2003, and demonstrated the benefits of a diverse franchise with most of the businesses firing on all cylinders. Our transformation is giving us the ability to seize growth opportunities and to adjust rapidly to changing conditions. We are confident about our momentum and our ability to sustain it, tempered somewhat by the remaining uncertainties in the environment as well as the traditionally slower second half.

We remain committed to building a portfolio of domestic and international businesses that will deliver long-term sustainable shareholder value.


Sir Peter Middleton Chairman Executive	Matthew W. Barrett Group Chief

BARCLAYS PLC

KEY FACTS (UNAUDITED)

Half-year ended

30.06.03

31.12.02

30.06.02

Number of UK branches

2,077

2,080

2,084

Number of overseas branches

499

499

550

Number of UK ATMs

3,900

3,900

Employees worldwide

73,600

74,700

78,400

Total customers registered for online banking

4.2m

3.9m

3.5m

UK OPENPLAN

Number of customers with Openplan from Woolwich

1.3m

1.2m

1.1m

Number of customers with Openplan from Barclays

1.1m

0.8m

0.3m

Total UK Openplan savings balances

£20.6bn

£18.5bn

£13.2bn

Total UK Openplan mortgage balances

£26.2bn

£21.2bn

£16.0bn

PERSONAL FINANCIAL SERVICES

Number of UK current accounts

10.6m

10.5m

10.3m

Number of UK savings accounts

10.7m

10.2m

9.5m

Total UK mortgage balances

£59.8bn

£58.7bn

£55.7bn

BARCLAYS PRIVATE CLIENTS

Total customer funds

£89bn

£85bn

£91bn

Number of Iberian Openplan customers

26,000

20,000

12,000

Average stockbroking deal volumes per day (excluding Charles Schwab Europe)

5,500

6,200

6,400

BARCLAYCARD

Number of Barclaycard UK customers

10.1m

9.7m

9.3m

Number of customers registered for online account services

1.3m

1.1m

0.9m

Number of retailer relationships

88,000

85,000

Number of retailer transactions processed

0.7bn

0.7bn

Number of Barclaycards in issue overseas

1.32m

1.28m

1.24m

BUSINESS BANKING

Number of Business Banking customers

728,000

727,000

731,000

Number of current accounts

733,000

731,000

738,000

Number of Business Premium deposit accounts

238,000

238,000

242,000

Customers registered for online banking/BusinessMaster

258,000

288,000

273,000

BARCLAYS AFRICA

Number of customers accounts

1.4m

1.4m

BARCLAYS GLOBAL INVESTORS

Total assets under management

£543bn

£462bn

£500bn

Number of institutional clients

2,400

2,300

2,100

Half-year ended

BARCLAYS CAPITAL

30.06.03

30.06.02

League

table

issuance

table

issuance

position

value

position

value

Global all debt

4th

$103.0bn

6th

$77.7bn

European all debt

3rd

$68.2bn

2nd

$56.5bn

All international bonds (all currencies)

5th

$60.6bn

10th

$43.7bn

All international bonds (Euros)

6th

€30.8bn

8th

€24.0bn

Sterling bonds

1st

£5.8bn

1st

£8.1bn

US investment grade corporate bonds

9th

$4.7bn

12th

$2.1bn

BARCLAYS PLC

GROUP PERFORMANCE MANAGEMENT

Value Based Management

Barclays is focused on delivering superior value to its shareholders. To achieve this, we have adopted the principles of Value Based Management (VBM) to develop strategy, allocate resources and manage performance.

In applying VBM principles, Barclays has developed a disciplined, fact-based approach to strategy development and business planning, which aims to build sustainable competitive advantage. Individual businesses generate alternative business strategies to facilitate the selection of the most appropriate value-maximising option. Our aim is to achieve profitable growth in all our businesses.

In order to set a benchmark for top quartile value creation, we set performance goals designed to stretch the thinking and ambition of our businesses. These goals act as inputs into our strategy development process that in turn generates business performance commitments.

Performance Goals

At the end of 1999, Barclays set a series of four year performance goals for the period 2000 to 2003 inclusive. The primary goal is to achieve and sustain top quartile total shareholder return (TSR) relative to a peer group¹ of financial services companies (reviewed annually). TSR is defined as the value created for shareholders through share price appreciation, plus re-invested dividend payments.

In addition, a set of secondary four year goals were established to frame the performance required to meet the primary goal.

The first supporting goal was to double the absolute value of an investment of a hypothetical £100 in Barclays over the four year period from the end of 1999. At the time of setting the goals, analysis of financial services companies who had delivered top TSR performance indicated that this level of value creation would be required for Barclays to be in the top quartile of the peer group.

The second supporting goal was to double economic profit² over the period. At the time of setting the goals, we believed that this level of economic profit generation would be required to deliver top quartile TSR performance. This goal requires the delivery of £6.1bn of cumulative economic profit for the period 2000 to 2003 inclusive.

The third supporting goal was specifically focused on improving cost management. This goal was to reduce the annual run rate of Group costs by £1bn over the four year period to the end of 2003 thereby absorbing the impact of inflation and volume related growth during the period. Our belief is that to achieve our shareholder value aspirations we must deliver world-class productivity performance.

1		Peer group for 2003: Abbey National, ABN Amro, BBVA, BNP Paribas, Citigroup, Deutsche Bank, HBOS, HSBC, Lloyds TSB, Royal Bank of Scotland and Standard Chartered. The peer group is unchanged from 2002.

2		Economic profit is defined as profit after tax and minority interests plus certain gains (and losses) reported within the statement of total recognised gains and losses where they arise from the Group’s business activities and are in respect of transactions with third parties, less a charge for the cost of average shareholders’ funds (which includes purchased goodwill). The cost of average shareholders’ funds is calculated using the capital asset pricing model. The cost of equity comprises primarily three components: the equity risk premium; the market beta; and the risk free rate. The Group’s cost of average shareholders’ funds for 2003 is unchanged from 2002 at 9.5%.

BARCLAYS PLC

GROUP PERFORMANCE MANAGEMENT

Performance relative to goals

At the end of June 2003, Barclays had met its primary goal of top quartile TSR performance relative to its peer group and also delivered the cost goal ahead of schedule. However, Barclays is behind the cumulative economic profit goal and is significantly behind the absolute value goal as a result of the fall in the stock markets during the period.

Total Shareholder Return

For the three and a half years from 31st December 1999 to 30th June 2003, Barclays was positioned third within its peer group, thereby achieving its primary top quartile TSR performance goal.

Absolute Value

In order to be on track to meet this goal, the hypothetical £100 investment should have been worth £183 on 30th June 2003. The hypothetical £100 investment would actually have been worth £117.

This performance has been achieved in an environment of widespread declines in stock market values. A corresponding hypothetical investment in a basket of shares made up of the Barclays peer group would have been worth £104 on 30th June 2003, while an investment in the FTSE 100 Index would have been worth £64.

Economic Profit

This goal required the generation of £5.1bn of cumulative economic profit by 30th June 2003, as the contribution of the first three and a half years in the four year (2000-2003 inclusive) cumulative goal of £6.1bn. Economic profit for the first half of 2003 was £0.7bn, which combined with the cumulative £3.9bn generated between 2000 and 2002 inclusive, delivered £4.6bn of cumulative economic profit at 30th June 2003.

The breakdown of economic profit performance is shown below:


	Half-year ended

	30.06.03			30.06.02
	£m			£m

Profit after tax and minority interests (excluding goodwill amortisation)		1,508			1,374
Average shareholders’ funds¹		16,566			15,682
Post-tax cost of equity		9.5	%		9.5	%
Cost of average shareholders’ funds²		(766	)		(720	)

Economic profit		742			654

1		The difference between the average shareholders’ funds (excluding minority interests) of £15,703m and that reported above represents cumulative goodwill amortisation charged and goodwill previously written off to reserves.

2		The cost includes a charge for purchased goodwill of £201m (2002: £199m). A post-tax cost of equity of 8.5% has been used for goodwill associated with the acquisition of Woolwich plc.

BARCLAYS PLC

GROUP PERFORMANCE MANAGEMENT

Economic Profit (continued)

The table below shows the economic profit generated by each business area. Further information on the economic capital methodology and the allocation of economic capital by business can be found on pages 46 and 47.


	Economic profit

	Half-year ended

	30.06.03			30.06.02
	£m			£m

Personal Financial Services		246			200
Barclays Private Clients — ongoing business		96			145
Barclays Private Clients — closed life assurance activities		(46	)		(34	)
Barclaycard		174			143
Business Banking		315			293
Barclays Africa		19			10
Barclays Capital		167			143
Barclays Global Investors		52			28
Other operations¹		(14	)		(54	)
Head office functions		(31	)		5
Goodwill²		(201	)		(199	)
Cost of variance to average shareholders’ funds		(35	)		(26	)

Economic profit		742			654

Cost goal

Between 2000 and 2002 inclusive, £910m of savings were achieved. In the first half of 2003, a further £160m of savings were achieved, creating a cumulative total of £1,070m. Therefore with three and a half years of the four year period elapsed, the goal had been achieved ahead of schedule.

We continue to benchmark each of our businesses against the appropriate peer group in financial services to establish top quartile efficiency ratio targets.

Barclays cost:income ratio was maintained at 53% (2002: 53%).

1		Includes Transition Businesses, see page 50.

2		Cost of equity charge on purchased goodwill.

BARCLAYS PLC

SUMMARY OF RESULTS (UNAUDITED)

PROFIT BEFORE TAX


		Half-year ended

		30.06.03			31.12.02			30.06.02
		£m			£m			£m

Personal Financial Services			534			508			475
Barclays Private Clients
	— ongoing business		177			165			246
	— closed life assurance activities		(46	)		(61	)		(26	)
Barclaycard			381			312			312
Business Banking			674			625			643
Barclays Africa			63			57			48
Barclays Capital			420			223			370
Barclays Global Investors			91			50			60
Other operations¹			(46	)		(52	)		(117	)
Head office functions			(60	)		(70	)		(39	)

Operating profit			2,188			1,757			1,972
Restructuring charge			(74	)		(132	)		(55	)
Woolwich integration costs			(22	)		(48	)		(32	)
Goodwill amortisation			(128	)		(124	)		(130	)
Exceptional items			(1	)		(3	)		—

			1,963			1,450			1,755

TOTAL ASSETS AND WEIGHTED RISK ASSETS


		Total assets						Weighted risk assets

		30.06.03		31.12.02		30.06.02		30.06.03		31.12.02		30.06.02
		£m		£m		£m		£m		£m		£m

Personal Financial Services			73,584		71,871		67,877		41,879		41,100		38,673
Barclays Private Clients
	— ongoing business		15,392		13,087		13,859		12,668		11,713		9,856
	— closed life assurance activities		862		929		950		—		—		—
Barclaycard			11,412		10,669		10,278		11,464		10,647		10,009
Business Banking			51,182		47,315		44,509		53,640		50,449		47,159
Barclays Africa			2,776		2,632		2,366		1,980		1,892		1,672
Barclays Capital			274,566		236,472		230,511		58,067		53,496		53,974
Barclays Global Investors			607		494		389		1,083		666		636
Other operations¹ and Head office functions			4,841		8,379		7,035		633		2,785		3,189
Goodwill			3,867		3,934		4,055		—		—		—
Retail life-fund assets			7,642		7,284		7,879		—		—		—

			446,731		403,066		389,708		181,414		172,748		165,168

Includes Transition Businesses, see page 50.

BARCLAYS PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT (UNAUDITED)


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Interest receivable		6,093			6,007			6,037
Interest payable		(2,857	)		(2,935	)		(2,904	)

Net interest income		3,236			3,072			3,133
Net fees and commissions receivable		2,030			1,961			1,964
Dealing profits		530			320			513
Other operating income		197			240			124

Total non-interest income		2,757			2,521			2,601

Operating income		5,993			5,593			5,734
Administration expenses — staff costs		(2,026	)		(1,877	)		(1,878	)
Administration expenses — other		(1,092	)		(1,213	)		(1,099	)
Depreciation and amortisation		(269	)		(271	)		(286	)

Operating expenses		(3,387	)		(3,361	)		(3,263	)

Operating profit before provisions		2,606			2,232			2,471
Provisions for bad and doubtful debts		(652	)		(771	)		(713	)
Provisions for contingent liabilities and commitments		—			(2	)		1

Operating profit		1,954			1,459			1,759
Profit/(loss) from joint ventures and associated undertakings		10			(6	)		(4	)
Exceptional items		(1	)		(3	)		—

Profit on ordinary activities before tax		1,963			1,450			1,755
Tax on profit on ordinary activities		(567	)		(446	)		(509	)

Profit on ordinary activities after tax		1,396			1,004			1,246
Minority interests — equity and non-equity		(13	)		(11	)		(9	)

Profit for the financial period attributable to the members of Barclays PLC		1,383			993			1,237
Dividends		(457	)		(787	)		(419	)

Profit retained for the financial period		926			206			818

Earnings per ordinary share		21.3	p		15.1	p		18.6	p
Dividend per ordinary share
Interim		7.05	p		—			6.35	p
Final		—			12.00	p		—

BARCLAYS PLC

CONSOLIDATED BALANCE SHEET (UNAUDITED)


		30.06.03		31.12.02		30.06.02
		£m		£m		£m

Assets:
Cash and balances at central banks			1,717		2,032		1,414
Items in course of collection from other banks			3,155		2,335		3,077
Treasury bills and other eligible bills			7,842		7,645		8,768
Loans and advances to banks — banking			14,937		15,369		16,889
	— trading		52,534		42,805		40,951
			67,471		58,174		57,840
Loans and advances to customers — banking			164,912		157,222		151,815
	— trading		59,447		45,176		47,211
			224,359		202,398		199,026
Debt securities			100,122		94,229		80,744
Equity shares			5,164		3,133		4,661
Interests in joint ventures and associated undertakings			454		455		89
Intangible fixed assets — goodwill			3,867		3,934		4,055
Tangible fixed assets			1,572		1,626		1,831
Other assets			23,366		19,821		20,324

			439,089		395,782		381,829
Retail life-fund assets attributable to policyholders			7,642		7,284		7,879

Total assets			446,731		403,066		389,708

Liabilities:
Deposits by banks — banking			51,357		48,751		39,052
	— trading		41,844		38,683		42,133
			93,201		87,434		81,185
Customer accounts — banking			153,893		144,078		143,388
	— trading		44,223		27,420		30,146
			198,116		171,498		173,534
Debt securities in issue			48,431		45,885		46,899
Items in course of collection due to other banks			1,662		1,416		1,396
Other liabilities			68,869		62,651		52,615
Undated loan capital — convertible to preference shares			—		310		328
Undated loan capital — non-convertible			6,570		6,368		5,454
Dated loan capital — convertible to preference shares			11		11		—
Dated loan capital — non-convertible			5,972		4,848		5,203

			422,832		380,421		366,614

Minority interests and shareholders’ funds:
Minority interests — equity and non-equity			193		156		124
Called up share capital			1,638		1,645		1,661
Reserves			14,426		13,560		13,430
Shareholders’ funds: equity			16,064		15,205		15,091

			16,257		15,361		15,215

			439,089		395,782		381,829
Retail life-fund liabilities attributable to policyholders			7,642		7,284		7,879

Total liabilities and shareholders’ funds			446,731		403,066		389,708

BARCLAYS PLC

FURTHER ANALYSIS OF PROFIT AND LOSS ACCOUNT (UNAUDITED)


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Interest receivable		6,093			6,007			6,037
Interest payable		(2,857	)		(2,935	)		(2,904	)

Net interest income		3,236			3,072			3,133
Net fees and commissions receivable		2,030			1,961			1,964
Dealing profits		530			320			513
Other operating income		197			240			124

Total non-interest income		2,757			2,521			2,601

Operating income		5,993			5,593			5,734
Administration expenses — staff costs		(1,960	)		(1,790	)		(1,839	)
Administration expenses — other		(1,062	)		(1,120	)		(1,051	)
Depreciation		(144	)		(147	)		(156	)

Operating expenses		(3,166	)		(3,057	)		(3,046	)

		2,827			2,536			2,688
Provisions for bad and doubtful debts		(652	)		(771	)		(713	)
Provisions for contingent liabilities and commitments		—			(2	)		1
Profit/(loss) from joint ventures and associated undertakings		13			(6	)		(4	)

Operating profit		2,188			1,757			1,972
Restructuring charge		(74	)		(132	)		(55	)
Woolwich Integration costs		(22	)		(48	)		(32	)
Goodwill amortisation		(128	)		(124	)		(130	)
Exceptional items		(1	)		(3	)		—

Profit on ordinary activities before tax		1,963			1,450			1,755

Earnings per ordinary share before restructuring charge, Woolwich integration costs, goodwill amortisation and exceptional items		24.3	p		18.9	p		21.4	p
Post-tax return on average shareholders’ funds (on a consistent basis with earnings per share above)		20.0	%		16.1	%		18.9	%

The above results are based on the consolidated profit and loss account shown on page 13 and show operating profit before charging the restructuring charge, costs directly associated with the integration of Woolwich plc, goodwill amortisation and exceptional items. The above presentation also includes the profit/(loss) from joint ventures and associated undertakings (prior to the amortisation of related goodwill) in the calculation of operating profit. Barclays believes that identifying operating profit on this basis assists in the understanding of profit trends in the results. In previous reporting periods, operating profit was additionally adjusted to remove the impact of Woolwich fair value adjustments primarily on net interest income. The presentation above no longer makes the adjustment to operating profit and comparative amounts have been restated accordingly.

BARCLAYS PLC

FINANCIAL REVIEW

Results by nature of income and expense


	Half-year ended

	30.06.03			31.12.02			30.06.02
Net interest income	£m			£m			£m

Interest receivable		6,093			6,007			6,037
Interest payable		(2,857	)		(2,935	)		(2,904	)

		3,236			3,072			3,133

Group net interest income increased by 3% to £3,236m, reflecting growth in balances, which more than offset an 18 basis point fall versus the first half of 2002 in the Group interest margin, to 2.66%. The margin versus the second half of 2002 was stable.

The Group interest margin of 2.66% (2002: 2.84%) includes 0.50% (2002: 0.53%) arising from the benefit of free funds. A component of the benefit of free funds is the hedge against short term interest rate movements. The contribution of the hedge remained broadly constant at 0.21%.

The 18 basis points fall in the Group interest margin was principally attributable to a 33 basis point fall in the international interest margin. The reduction was mainly as a result of managing down the higher yielding Transition Businesses and the general fall in global interest rates. The proportion of international average interest earning assets increased.

The domestic net interest margin remained flat, reflecting active management of margins across the UK businesses, particularly in the mortgage market.

Average interest earning assets increased by 11% to £244bn (2002: £220bn).

Domestic average interest earning assets increased by 6% to £158bn (2002: £149bn), predominantly driven by a £6bn increase in mortgage balances in Personal Financial Services.

International average interest earning assets increased by 21% to £86bn (2002: £71bn), reflecting an increase of £15bn in holdings of debt securities in Barclays Capital.

BARCLAYS PLC

Yields, spreads and margins — banking business¹


	Half-year ended

	30.06.03		31.12.02		30.06.02

Gross yield ²		%		%		%
Group		5.00		5.22		5.48
Domestic		5.75		5.86		6.09
International		3.64		3.93		4.20
Interest spread ³
Group		2.37		2.32		2.52
Domestic		3.29		3.16		3.27
International		0.72		0.63		0.98
Interest margin ⁴
Group		2.66		2.66		2.84
Domestic		3.67		3.56		3.66
International		0.80		0.80		1.13
Average UK base rate		3.80		4.00		4.00

1		Domestic business is conducted primarily in the UK in Sterling. International business is conducted primarily in foreign currencies. In addition to the business carried out by overseas branches and subsidiaries, international business is transacted in the UK by Barclays Capital.

		The yields, spreads, and margins shown above exclude non-margin related items, including profits and losses on the repurchase of loan capital and the unwinding of the discount on vacant leasehold property provisions.

2		Gross yield is the interest rate earned on average interest earning assets.

3		Interest spread is the difference between the interest rate earned on average interest earning assets and the interest rate paid on average interest bearing liabilities.

4		Interest margin is net interest income as a percentage of average interest earning assets.

Average interest earning assets and liabilities — banking business

Half-year ended

30.06.03

31.12.02

30.06.02

Average interest earning assets

£m

Group

243,668

230,033

220,323

Domestic

157,565

154,717

148,903

International

86,103

75,316

71,420

Average interest bearing liabilities

Group

216,707

203,357

196,059

Domestic

132,796

131,927

128,163

International

83,911

71,430

67,896

BARCLAYS PLC

Net fees and commissions


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Fees and commissions receivable		2,298			2,241			2,213
Less: fees and commissions payable		(268	)		(280	)		(249	)

		2,030			1,961			1,964

Group net fees and commissions increased by £66m (3%) to £2,030m, reflecting increases in most businesses, partially offset by a reduction in Barclays Private Clients.

In Personal Financial Services, there was a reduction of 2% to £389m (2002: £397m) reflecting lower income from the independent financial advisor (IFA) business.

Net fees and commissions in Barclays Private Clients decreased 26% to £240m (2002: £325m) reflecting the impact of market conditions on sales of investment products, brokerage and fund management fees in private banking and the absence of the contribution of the Caribbean.

In Barclaycard, growth in the international business, UK account activity fees and higher merchant acquiring volumes accounted for the growth in net fees and commissions of 19% to £380m (2002: £320m).

In Business Banking, net fees and commissions increased by 8% to £455m (2002: £422m). Lending fees grew rapidly and reflected the growth in the balance sheet. Foreign exchange related commission grew due to increased business volumes. Money transmission income fell and was affected by the alternative offer to customers triggered by the Competition Commission Inquiry transitional pricing remedy. The migration to lower cost electronic payment methods continued. Business Banking fees and commissions included £71m (2002: £66m) in respect of foreign exchange income on customer transactions with Barclays Capital.

Net fees and commissions in Barclays Africa increased 20% to £65m due to stronger business activity in Kenya and the acquisition of BNPI Mauritius.

Barclays Capital net fees and commissions remained in line with the prior year at £244m (2002: £245m).

Barclays Global Investors net fees and commission increased by 8% to £306m, with the increase dampened by foreign exchange translation movements of £37m and lower average market levels. Strong net new asset growth, investment performance and higher margin product sales created growth in investment management fees.

Income from the sale of Legal & General products following the alliance in 2001 is included in net fees and commissions.

BARCLAYS PLC

Dealing profits


	Half-year ended

	30.06.03		31.12.02			30.06.02
	£m		£m			£m

Rates related business		449		356			520
Credit related business		81		(36	)		(7	)

		530		320			513

Almost all the Group’s dealing profits are generated in Barclays Capital.

Dealing profits grew 3% to £530m, with strong performances in the credit businesses, in particular corporate bonds. This was partially offset by lower contributions in the Rates businesses in particular from US interest rate derivatives.

Total foreign exchange income was £277m (2002: £251m) and consisted of revenues earned from both retail and wholesale activities. The foreign exchange income earned on customer transactions by Personal Financial Services, Barclays Private Clients, Barclaycard, Business Banking, Barclays Africa and Barclays Global Investors, both externally and with Barclays Capital, is reported in those business units, within fees and commissions.

BARCLAYS PLC

Other operating income


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Dividend income from equity shares		3			4			3
Profits on disposal of investment securities		55			51			7
Income from the long term assurance business		(31	)		(20	)		(31	)
Property rentals		9			9			11
Income on insurance underwriting		108			94			84
Other income		53			102			50

		197			240			124

Other operating income increased by £73m (59%) to £197m (2002: £124m).

Profits on disposal of investment securities primarily reflect realisations in the private equity business within Barclays Capital.

Virtually all of the Group’s long term assurance activity is based in the UK. This UK business, which closed to new business following the formation of the strategic alliance with Legal & General in 2001, was the main contributor to the loss of £31m for 2003 and the losses experienced in 2002. The contribution for 2003 included costs of redress for customer claims in respect of endowment policies and other actuarial basis changes, partially offset by the benefit of the limited stockmarket recovery during the first half of 2003.

Total costs of customer redress in respect of endowment policies were £50m (2002: £nil).

Income on insurance underwriting rose by £24m to £108m as a result of income from increased consumer lending activities and a favourable claims experience.

BARCLAYS PLC

Operating expenses

The Group manages core costs on the basis of three distinct categories: strategic investment, revenue related and business as usual. In addition, goodwill amortisation, restructuring costs and integration costs are reported separately.

Costs are allocated to individual categories based on the following definitions:

Strategic investment costs relate to the development costs of an investment project which has either or both of the following features:

	–	it generates or enables new revenue streams or definable growth in a revenue stream; or

	–	it generates or enables reduced costs.

Strategic investment costs exclude restructuring costs, integration costs and project operating costs.

Revenue related costs are those costs which are directly associated with a corresponding change in revenues or profit. An increase or decrease in revenues or profits will usually lead to an increase or decrease in these costs.

Business as usual costs are those costs not classified as strategic investment or revenue related. This category includes operating costs of live strategic projects, other project costs not classified as strategic and volume related costs which are not revenue related.

Restructuring costs are those charges associated with the ongoing reorganisation and restructuring of the Group’s operations as part of its cost reduction initiatives.

Integration costs are in respect of projects and initiatives associated with the acquisition of Woolwich plc and include expenditure to achieve cost savings and revenue synergies.

BARCLAYS PLC

Based on the definitions, the Group’s costs are summarised in the following table:

Operating expenses


	Half-year ended

	30.06.03		31.12.02		30.06.02
	£m		£m		£m

Business as usual expenses		2,550		2,493		2,426
Revenue related costs		454		348		382
Strategic investment costs		145		193		188
Acquisitions and disposals		17		23		50

Operating expenses		3,166		3,057		3,046
Restructuring charge		74		132		55
Goodwill amortisation		125		124		130
Woolwich Integration costs		22		48		32

		3,387		3,361		3,263

Operating expenses, before restructuring charge, goodwill, amortisation and integration costs, increased 4% to £3,166m.

Business as usual costs rose by 5% (£124m) to £2,550m, with the majority of the increase, £109m, attributable to the year-on-year impact of the move to a pensions charge (£73m) from a pensions credit (£36m) in 2002.

Businesses as usual costs also reflected the consequences of continued investment in the core businesses of Personal Financial Services and Barclaycard. In Barclays Africa business as usual costs increased due to further development of the business. In Business Banking and Barclays Capital they were held broadly in line with the prior year. Business as usual costs in Barclays Private Clients and Barclays Global Investors were lower.

Revenue related costs rose 19% to £454m as a result of improved performance in Barclays Capital and Barclays Global Investors.

Strategic investment expenditure of £145m was 23% lower than in the first half of 2002, reflecting tight cost control across the Group and the prioritisation of key initiatives.

BARCLAYS PLC

Administrative expenses — staff costs


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Salaries and accrued incentive payments		1,631			1,552			1,607
Social security costs		130			122			118
Pension costs		97			(19	)		(8	)
Post-retirement health care		9			8			7
Other staff costs		159			214			154

		2,026			1,877			1,878

Included above:
Restructuring charge		(66	)		(86	)		(38	)
Woolwich integration costs		—			(1	)		(1	)

Excluding restructuring and integration costs		1,960			1,790			1,839

		30.06.03			31.12.02			30.06.02
Number of staff at period end:¹
Personal Financial Services²		26,600			27,200			28,200
Barclays Private Clients³		10,300			10,700			13,000
Barclaycard⁴		5,000			4,700			4,700
Business Banking⁵		9,200			9,700			9,500
Barclays Africa		7,600			7,500			7,900
Barclays Capital		5,300			5,500			5,600
Barclays Global Investors		2,000			2,100			2,100
Other operations⁶		7,100			6,800			6,900
Head office functions		500			500			500

Total Group permanent and contract staff worldwide		73,600			74,700			78,400
Temporary and agency staff worldwide		3,800			3,700			4,500

Total including temporary and agency staff		77,400			78,400			82,900

1		Staff numbers are on a full time equivalent basis. United Kingdom permanent and contract staff are 58,400 (31st December 2002: 59,000; 30th June 2002: 60,400).

2		Staff numbers decreased since 31st December 2002 by 600, as a result of a number of productivity initiatives.

3		The decrease in staff numbers since 31st December 2002 reflected restructuring (500), transfers to Other operations (200), partly offset by the acquisition of Charles Schwab Europe (300).

4		Includes 200 staff arising from the acquisition of Clydesdale Financial Services.

5		Staff numbers decreased since 31st December 2002 by 500, due to various restructuring initiatives.

6		The increase in staff numbers reflected the transfer of staff from other businesses, predominately Barclays Private Clients.

BARCLAYS PLC

Staff costs

Staff costs, excluding the restructuring charge and the integration costs arising from the acquisition of Woolwich plc, increased by 7% to £1,960m.

Salaries and accrued incentive payments increased by 1% to £1,631m reflecting increased performance related payments within Barclays Capital and Barclays Global Investors. The impact of the annual UK pay award was more than offset by a reduction in Group staff numbers.

Pension costs calculated in accordance with SSAP 24 included a charge of £73m (2002: £36m credit) in respect of the Group’s main UK pension schemes.

Permanent and contract staff numbers fell by 1,100 during 2003. The implementation of restructuring programmes resulted in a decrease of 1,700 staff. This was partly offset by an increase of 300 staff from the acquisition of Charles Schwab Europe in Barclays Private Clients, an increase of 300 staff in Barclaycard mostly attributable to the acquisition of Clydesdale Financial Services.

The numbers of staff reductions relating to each restructuring programme are as follows:


	Number of
	staff who
	have left
	during 2003

Current year programme		400
Prior year programme		1,300

Total		1,700

The number of staff who were under notice at 30th June 2003 was 1,300.

The restructuring charge of £74m detailed on page 45 relates to the 2003 restructuring programme above.

BARCLAYS PLC

Administrative expenses


	Half-year ended

	30.06.03			31.12.02			31.06.02
	£m			£m			£m

Property and equipment expenses		510			512			473
Other administrative expenses		582			701			626

		1,092			1,213			1,099

Included above:
Restructuring charge		(8	)		(46	)		(17	)
Woolwich Integration costs		(22	)		(47	)		(31	)

Excluding restructuring charge and integration costs		1,062			1,120			1,051

Administrative expenses were broadly flat.

Property and equipment expenses increased by 8% to £510m primarily due to increased external information technology costs and increased property rentals.

Other administrative expenses reduced by 7% to £582m reflecting decreases across a number of areas, principally advertising and securities clearing expenses.

Depreciation and amortisation


		Half-year ended

		30.06.03		31.12.02		30.06.02
		£m		£m		£m

Property depreciation			45		42		51
Equipment depreciation			97		97		101
Loss on sale of equipment			2		8		4

			144		147		156
Goodwill amortisation — Woolwich			103		103		103
	— other		22		21		27

			269		271		286

BARCLAYS PLC

Provisions for bad and doubtful debts


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

The charge for the period in respect of bad and doubtful debts comprises:
Specific provisions
New and increased		771			861			858
Releases		(70	)		(67	)		(60	)
Recoveries		(62	)		(65	)		(41	)

		639			729			757
General provision charge / (release)		13			42			(44	)

Net charge		652			771			713

The net charge for the period in respect of bad and doubtful debts comprises:
Transition Businesses		15			27			97
Other		637			744			616

Net charge		652			771			713

Total provisions for bad and doubtful debts at end of the period comprise:
Specific provisions		2,261			2,261			2,139
General provisions		752			737			702

		3,013			2,998			2,841

The net provisions charge for the half year decreased by 9% from £713m to £652m. Both wholesale and retail businesses contributed to the decrease. The significant impact of South American Corporate Banking in the first half of 2002 was not repeated. Provisions, excluding the impact of South America Corporate Banking, rose 6% to £643m (2002: £609m).

In Barclays Capital, improved credit conditions in the large corporate market resulted in fewer credit provisions and lower non-performing loans. In Personal Financial Services the application of credit risk management initiatives resulted in lower provisions half on half. Provisions were higher in Business Banking, the increase being substantially attributable to provisions in respect of a small number of larger companies, with no particular industry concentration. Provisions increased in Barclaycard as the result of portfolio growth over the last two years.

Overall, the net provision charge for the period as a percentage of average banking loans and advances improved from 0.42% to 0.36% for the half-year (annualised, from 0.83% to 0.72%).

For the half year provision cover for non-performing and potential problem loans improved as detailed on page 56.

BARCLAYS PLC

Profit /(loss) from joint ventures and associated undertakings


	Half-year ended

	30.06.03		31.12.02			30.06.02
	£m		£m			£m

Profit/(loss) from joint ventures		—		1			(6	)
Profit/(loss) from associated undertakings		10		(7	)		2

		10		(6	)		(4	)

The profit from associated undertakings in the first half of 2003 primarily relates to the investment in FirstCaribbean (including goodwill amortisation of £3m).

Exceptional items


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

(Loss)/profit on disposal of Group undertakings		(1	)		8			—
Loss on termination of Group activities		—			(11	)		—

		(1	)		(3	)		—

Tax

The charge for the period assumes a UK corporation tax rate of 30% for the calendar year 2003 (full year 2002: 30%). The effective rate of tax for the first half of 2003 is 28.9% (2002: 29.0%). This is lower than the standard rate due to the beneficial effects of lower tax on overseas income and certain non-taxable gains, offset by the absence of tax relief on the goodwill charge.

Included in the charge is a credit of £6m (2002: £8m credit) on the decrease in the shareholders’ interest in the long term assurance fund.

BARCLAYS PLC

Earnings per ordinary share

Earnings per ordinary share are based upon the results after deducting tax, profit attributable to minority interests and dividends on staff shares.

Half-year ended

30.06.03

31.12.02

30.06.02

Earnings in period

£1,383m

£993m

£1,237m

Earnings in period before restructuring, integration costs, goodwill amortisation and exceptional items

£1,578m

£1,249m

£1,424m

Weighted average number of ordinary shares in issue

6,488m

6,599m

6,656m

Calculation of adjusted earnings per share

pence

pence

Basic earnings per ordinary share

21.3

15.1

18.6

Restructuring charge

0.8

1.5

0.6

Goodwill amortisation

2.0

1.8

1.9

Woolwich Integration costs

0.2

0.5

0.3

Adjusted earnings per share

24.3

18.9

21.4

Dividends on ordinary shares

The Board has decided to pay, on 1st October 2003, an interim dividend for the year ending 31st December 2003 of 7.05p per ordinary share, for shares registered in the books of the Company at the close of business on 15th August 2003. Shareholders who have their dividends paid direct to their bank or building society account will receive a consolidated tax voucher detailing the dividends paid in the 2003/2004 tax year in mid-October 2003.

For qualifying US and Canadian resident ADR holders, the interim dividend of 7.05p per ordinary share becomes 28.2p per ADS (representing four shares). The ADR depositary will mail the dividend on 1st October 2003 to ADR holders on the record on 15th August 2003.

For qualifying Japanese shareholders, the interim dividend of 7.05p per ordinary share will be distributed in mid-October to shareholders on the record on 15th August 2003.

Shareholders may have their dividends reinvested in Barclays PLC shares by participating in the Barclays Dividend Reinvestment Plan. The plan is available to all shareholders, including members of Barclays Sharestore, provided that they do not live in or are subject to the jurisdiction of any country where their participation in the plan would require Barclays or The Plan Administrator to take action to comply with local government or regulatory procedures or any similar formalities. Any shareholder wishing to obtain details and a form to join the plan should contact The Plan Administrator by writing to: The Plan Administrator to Barclays, PO Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 7NH; or, by phoning 0870 702 0196. The completed form should be returned to The Plan Administrator on or before 9th September 2003 for it to be effective in time for the payment of the interim dividend on 1st October 2003. Shareholders who are already in the plan need take no action unless they wish to change their instructions in which case they should write to The Plan Administrator.

BARCLAYS PLC

Capital resources


	30.06.03		31.12.02		30.06.02
	£m		£m		£m

Shareholders’ funds		16,064		15,205		15,091
Minority interests		193		156		124

		16,257		15,361		15,215
Loan capital		12,553		11,537		10,985

		28,810		26,898		26,200

Total capital resources increased in the half-year by £1,912m.

Equity shareholders’ funds increased by £859m reflecting profit retentions of £926m, net proceeds of share issues of £16m and exchange rate movements of £36m, offset by share repurchases of £119m.

Loan capital rose by £1,016m reflecting raisings of £1,667m and exchange rate movements of £58m, offset by redemptions of £708m and amortisation of issue expenses of £1m.

BARCLAYS PLC

Capital ratios

Weighted risk assets and capital resources, as defined for supervisory purposes by the Financial Services Authority, comprise:


		Half-year ended

		30.06.03			31.12.02			30.06.02
Weighted risk assets:		£m			£m			£m

Banking book
	on-balance sheet		131,320			128,691			124,864
	off-balance sheet		22,358			21,999			21,587
Associated undertakings and joint ventures			2,777			3,065			501

Total banking book			156,455			153,755			146,952

Trading book
	Market risks		11,336			7,988			7,600
	Counterparty and settlement risks		13,623			11,005			10,616

Total trading book			24,959			18,993			18,216

Total weighted risk assets			181,414			172,748			165,168

Capital resources:
Tier 1
Called up share capital			1,638			1,645			1,661
Less: own shares			(7	)		(4	)		(2	)

			1,631			1,641			1,659
Eligible reserves			14,295			13,409			13,400
Minority interests — equity			592			522			192
Reserve capital instruments ¹			1,783			1,771			1,838
Tier one notes ¹			1,005			1,019			—
Less: goodwill			(4,084	)		(4,158	)		(4,074	)

Total qualifying tier 1 capital			15,222			14,204			13,015

Tier 2
Revaluation reserves			23			25			31
General provisions			752			737			702
Qualifying subordinated liabilities ²
	Undated loan capital		3,750			3,854			3,910
	Dated loan capital		5,448			4,573			4,733
Minority interest³			1			2			3

Total qualifying tier 2 capital			9,974			9,191			9,379

Tier 3: short term subordinated liabilities²			441			203			396

Less: Supervisory deductions
Investments not consolidated for Supervisory purposes⁴			(1,363	)		(1,288	)		(1,330	)
Other deductions			(247	)		(119	)		(104	)

			(1,610	)		(1,407	)		(1,434	)

Total net capital resources			24,027			22,191			21,356

Capital ratios:			%			%			%
Tier 1 ratio			8.4			8.2			7.9
Risk asset ratio			13.2			12.8			12.9

1		Reserve capital instruments and tier one notes are included in undated loan capital in the consolidated balance sheet.

2		Subordinated liabilities are included in tiers 2 or 3, subject to limits laid down in the supervisory requirements. Barclays retains significant capacity to raise additional capital within these limits.

3		Revaluation reserves of £1m (31st December 2002: £2m; 30th June 2002: £3m).

Includes £799m (31st December 2002: £867m; 30th June 2002: £844m) of shareholders’ interest in the long-term assurance funds.

BARCLAYS PLC

Capital ratios (continued)

Capital ratios strengthened from the position as at 31st December 2002 as a result of a £1.8bn (8.3%) growth in total net capital resources, which more than offset the impact of a £8.7bn (5.0%) growth in weighted risk assets. The net impact on the risk asset ratio was an increase of 0.4% and on the tier 1 ratio an increase of 0.2%.

Within total net capital, tier 1 capital rose by £1.0bn, almost wholly in equity shareholders’ funds including retained profit of £0.9bn, while tier 2 capital increased by £0.8bn and tier 3 capital by £0.2bn. Supervisory deductions increased by £0.2bn.

The increase in weighted risk assets is mainly accounted for by a rise of £6.0bn (31.4%) in the Trading book.

Banking book weighted risk assets grew by £2.7bn (1.8%). The growth in weighted risk assets is discussed further under ‘Total assets’ below.

Total assets¹

The Group’s balance sheet grew by 11% (£43.7bn) to £446.7bn. Weighted risk assets rose by 5% to £181.4bn.

Within Personal Financial Services, total assets increased by 2% to £73.6bn. Weighted risk assets increased by 2% to £41.9bn. This was mainly attributable to steady growth in UK mortgage balances, up 2% to £59.8bn (31st December 2002: £58.7bn), and to good growth in both secured and unsecured lending.

Barclays Private Clients total assets grew (excluding the assets of the closed life assurance activities) by £2.2bn to £15.4bn, primarily as a result of the growth of Openplan in Spain. Weighted risk assets increased by £1bn, again reflecting the growth in Openplan assets.

Barclaycard total assets increased by £0.7bn (7%) to £11.4bn. Weighted risk assets increased by 8%, reflecting growth in extended credit balances.

Within Business Banking, total assets grew by 8% to £51.2bn in the first half of 2003. Weighted risk assets increased by 6% to £53.6bn. Lending growth remained concentrated towards higher quality larger business customers.

Barclays Capital total assets increased by 16% to £274.6bn (31st December 2002: £236.5bn) due to increases in settlement balances and government securities. Total settlement balances increased by £25bn reflecting higher volumes in government debt trading at the period end. Increases in government debt securities were £5bn. Total weighted risk assets increased by 9% to £58.1bn (31st December 2002: £53.5bn), reflecting the higher quality and lower risk weightings associated with government securities.

All comparisons, unless otherwise specified, are relative to 31st December 2002.

BARCLAYS PLC

Personal Financial Services

Personal Financial Services provides a wide range of products and services to 14 million personal customers throughout the United Kingdom, including current accounts, savings, mortgages, consumer loans and general insurance. These are available to customers through integrated channels comprising the branch network, telephone banking and online banking.

Personal Financial Services works closely with other businesses in the Group, in particular Barclays Private Clients, Barclaycard and Business Banking.

Within Personal Financial Services, the goal is to build broader and deeper customer relationships with the existing customer base as well as attracting new customers. This will be achieved by a focus on increasing customer value along with a continued commitment to improving customer service standards.


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Net interest income		977			917			917
Net fees and commissions		389			397			397
Other operating income		158			169			122

Operating income		1,524			1,483			1,436
Operating costs		(829	)		(816	)		(789	)
Provisions for bad and doubtful debts		(163	)		(161	)		(173	)
Profit from joint ventures		2			2			1

Operating profit		534			508			475
Restructuring costs		(27	)		(21	)		(18	)
Woolwich Integration costs		(22	)		(40	)		(30	)

Profit before tax and exceptional items		485			447			427

Personal Financial Services operating profit increased by 12% (£59m) to £534m (2002: £475m) reflecting income momentum, cost control and the benefits of improved credit management.

Operating income was up 6% (£88m) to £1,524m (2002: £1,436m). The continued success in rolling out Openplan across the business has contributed to higher income. Net revenue (operating income less provisions) increased 8% to £1,361m (2002: £1,263m).

Stronger volumes and active margin management helped drive improvements in income. This was broadly based, with revenue growth in evidence across the major business activities within Personal Financial Services. The increase in income was particularly strong within general insurance and consumer finance activities, 21% and 14% respectively. Income from the mortgage business increased by 12%. Income from current account and savings activities increased by 5%. Income from independent financial advice declined 40%.

Net interest income increased by 7% (£60m) to £977m (2002: £917m) reflecting the positive impact of higher balances and improved asset margins.

Consumer finance performance was driven by higher average balances, rising 6% to £6.7bn (2002: £6.3bn), and improved margins. In the key Barclayloan product, sales volumes were significantly higher than in the same period in 2002. A focus on credit management has reduced potential problem loans.

BARCLAYS PLC

Average savings balances increased 11% year on year to £31.5bn (2002: £28.4bn) with Barclays branded savings growing at 23%. The number of savings accounts increased by 13% to 10.7m (2002: 9.5m). Savings margins stabilised, reflecting active management of the product mix. Total Openplan saving balances exceeded £20bn, with the average balance per customer being significantly higher than outside Openplan.

Average mortgage balances increased 11% year on year to £59.5bn (2002: £53.4bn). The margin on new business improved compared with the first half of 2002. This had an impact on mortgage volumes. UK mortgage gross advances were £8.8bn (2002: £11.1bn), a market share of 7%. Net lending of £1.1bn is lower than the first half of 2002 (2002: £3.9bn), a market share of 3% (2002: 11%), as a more cautious stance was adopted in specific areas of the mortgage market. UK mortgage balances ended the period at £59.8bn (31st December 2002: £58.7bn).

Net fees and commissions fell 2% to £389m (2002: £397m), principally caused by a weaker performance in the independent financial advisor (IFA) business. Income from value-added, fee-based current accounts continued to rise.

Other operating income increased 30% (£36m) to £158m (2002: £122m). Of the increase in other operating income, £18m resulted from a revision of the estimated amounts expected to be repaid on banking liabilities. There was also a significant increase in the contribution from general insurance activities, reflecting strong sales of personal protection insurance products, and a more favourable claims experience.

The Openplan proposition now has 2.4m customers (31st December 2002: 2.0m). Openplan offers fully integrated banking and delivers tangible benefits to customers. It continued to be highly successful in attracting new customers and retaining existing customers. There is evidence that Openplan facilitates the development of a deeper and more enduring customer relationship through higher product penetration and lower attrition rates, leading to higher income per customer. As the proposition has matured, a greater percentage of new to Group customers have been recruited. Fully launched in April 2002, Openplan from Barclays had attracted 1.1m customers across the UK. Product penetration was 4.4 products per customer, well above the average of 2.6 outside Openplan. Annual customer revenue is £380 relative to £212 outside Openplan. Openplan from Woolwich customer numbers rose to 1.3m (2002: 1.1m) and product penetration increased to 3.3 (2002: 3.2). Annual customer revenue is £307 relative to £146 outside Openplan.

Operating costs rose by 5% (£40m) to £829m (2002: £789m). The increase in costs was largely attributable to the impact of the pension charge, which was £20m (2002: credit £10m). The underlying costs of the business were tightly managed to improve operational efficiency and were broadly flat despite higher business volumes. Staff numbers declined in the period as the benefits of the new organisational design and other efficiency initiatives were realised. Cost savings are being re-invested in the franchise to deliver performance improvements. The cost:income ratio improved to 54% (2002: 55%).

Provisions decreased by 6% (£10m) to £163m (2002: £173m), reflecting the improved quality of the lending portfolio and improvements to the collections and fraud processes. This reduction has been achieved prudently, coverage ratios were consistent with year end 2002. Latest loan to value ratios within the mortgage book averaged 40%.

BARCLAYS PLC

Barclays Private Clients

Barclays Private Clients serves affluent and high net worth clients, primarily in the UK and continental Europe, providing banking and asset management services.

The development of an integrated business model, covering both banking and investment services, has continued in 2003, with a strong focus on improving operational efficiency and the provision of distinctive customer service.

On 31st January 2003, the retail stockbroking business Charles Schwab Europe was acquired. On 8th May 2003, Barclays announced the acquisition of Banco Zaragozano in Spain which was completed on the 16th July 2003.

The contribution recognised from the closed life assurance activities is reported separately to provide increased transparency in the financial reporting within Barclays Private Clients.

The line by line comparison with the first half of 2002 was impacted by the Caribbean businesses being accounted for as an associated undertaking following the formation of FirstCaribbean on 11th October 2002.

Barclays Private Clients works closely with other Group businesses, particularly Barclays Global Investors, Personal Financial Services, Business Banking and Barclays Capital, in order to enhance product development and customer service.


		Half-year ended

		30.06.03			31.12.02			30.06.02
		£m			£m			£m

Net interest income			361			380			408
Net fees and commissions			240			269			325
Other operating income			13			4			15

Operating income			614			653			748
Operating costs			(430	)		(460	)		(484	)
Provisions for bad and doubtful debts			(16	)		(19	)		(18	)
Profit/(loss) from associated undertakings			9			(9	)		—

Operating profit — ongoing business			177			165			246
Restructuring costs			(9	)		(39	)		(5	)
Woolwich Integration costs			—			(7	)		(1	)

Profit before tax and exceptional items
	— ongoing business		168			119			240
Contribution from closed life assurance activities			(46	)		(61	)		(26	)

Profit before tax and exceptional items			122			58			214

Barclays Private Clients operating profit for the ongoing business decreased 28% (£69m) to £177m (2002: £246m), primarily driven by a fall in net fees and commissions of £85m and also a decline in net interest income of £47m. Despite the recent recovery, the equity markets were significantly lower than in the first half of 2002 which impacted customer appetite globally for investment products. Performance in banking activities was at a similar level to the first half of 2002.

Net interest income decreased 12% (£47m) to £361m (2002: £408m). The decrease was wholly attributable to the absence of the contribution of the Caribbean. The impact of increased income generated from underlying higher average customer deposits, up 4%, and average loans, up 31%, broadly compensated for the impact of margin compression, lower interest rates and changes in the product mix.

BARCLAYS PLC

Net fees and commissions decreased 26% (£85m) to £240m (2002: £325m). This reflected the impact of market conditions on sales of investment products, brokerage and fund management fees in Private Banking and the absence of the contribution of the Caribbean business. The average level of the FTSE 100 Index was 3844, 25% lower than in the prior year period (2002: 5126). Average daily deal volumes in UK retail stockbroking (excluding the impact of Charles Schwab Europe) were lower at 5,500 (2002: 6,400). The stockbroking business maintained its leading UK position with a 16% market share (excluding Charles Schwab Europe, 12%) (2002: 11%) of retail stockbroking, as measured by client orders.

Operating costs decreased 11% (£54m) to £430m (2002: £484m) fully mitigating the additional pensions charge of £14m (2002: credit £7m). Costs reduced as a result of lower volume related costs, a direct consequence of reduced sales of investment products, the rigorous control of costs, the continuation of efficiency and business transformation initiatives and the absence of Caribbean operating costs. Strategic investment spend represented 8% of operating costs, a similar percentage to the first half of 2002.

Provisions decreased by £2m to £16m (2002: £18m), reflecting the impact of the Caribbean transaction.

Total customer funds, comprising customer deposits and assets under management (including assets managed by Legal & General under the strategic alliance), increased by £4bn to £89bn (31st December 2002: £85bn), primarily due to the impact of new business, favourable exchange rate movements and the limited stock market recovery since the year end. Customer deposits increased by £1bn to £39bn.

The increase in customer loans, up £1bn in the half year to £11bn, primarily reflected the continued growth of Openplan mortgages in Spain. Openplan has continued to be an attractive product in Spain with 6,000 new customers recruited this half-year and an estimated market share of net new mortgage business of 4%. Income in Spain continued to grow significantly this year, increasing by 27% (£19m) to £90m. In the Premier Banking business in the UK, Openplan attracted £0.6bn of new mortgage balances together with £0.4bn of additional savings in the period.

Sales of Legal & General life and pensions products have fallen in line with industry trends. Sales of funds and bonds have also been impacted by reduced customer demand for investment products.

The contribution from the closed life assurance activities, a loss of £46m (2002: loss of £26m) comprises the embedded value of the closed Barclays Life and Woolwich Life funds together with related administration costs and also costs of redress for customers who have claimed in respect of endowment policies.

Total costs of customer redress in respect of endowment policies was £50m (2002 first half: £nil; 2002 second half: £19m).

BARCLAYS PLC

Barclaycard

Barclaycard is one of the leading credit card businesses in Europe. In addition to its operations in the United Kingdom, it is active outside the UK through Barclaycard International, in Germany, Spain, Greece, France and Italy. It also operates in Africa. Barclaycard offers a full range of credit card services to individual customers, together with card payment facilities to retailers and other businesses.

Barclaycard continued the strategic development of its business through both organic and non organic activity. Providian UK, acquired in April 2002 and now re-branded as Monument, has been integrated within Barclaycard. Barclaycard has agreed with Littlewoods Limited to provide credit cards and other financial products to its customer base. On the 19th May 2003, Barclaycard acquired the Clydesdale Financial Services point of sale finance business.

There has also been further development in Barclaycard International. Barclaycard already operates in Spain and there is an opportunity through the Banco Zaragozano acquisition to accelerate growth in this market.

In April, Barclaycard purchased the global rights (excluding the UK and Singapore) to the Manchester United brand for world-wide co-branding and sub-licensing opportunities.


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Net interest income		498			455			431
Net fees and commissions		380			376			320

Operating income		878			831			751
Operating costs		(292	)		(296	)		(256	)
Provisions for bad and doubtful debts		(205	)		(221	)		(181	)
Loss from joint ventures		—			(2	)		(2	)

Operating profit		381			312			312
Restructuring costs		(4	)		(9	)		(3	)
Woolwich Integration costs		—			(1	)		—

Profit before tax and exceptional items		377			302			309

Barclaycard operating profit increased 22% (£69m) to £381m (2002: £312m).

Operating income increased 17% (£127m) to £878m (2002: £751m). Net revenue (operating income less provisions) increased by 18% (£103m) to £673m (2002: £570m).

Net interest income increased 16% (£67m) to £498m (2002: £431m). This was due to good growth in UK average extended credit balances, up 16% to £7.2bn (2002: £6.2bn), continued cardholder rate management, the benefits of falling interest rates, growth overseas and the benefit of the Monument business acquired in April 2002. Recruitment of UK customers remained strong, up 21%, with 651,000 (2002: 540,000) acquired in the period.

Net fees and commissions increased 19% (£60m) to £380m (2002: £320m), largely driven by growth in the international business, UK account activity fees and higher merchant acquiring volumes.

BARCLAYS PLC

Operating costs increased 14% (£36m) to £292m (2002: £256m) due to the strong growth of the business and the inclusion of Monument. The cost:income ratio improved to 33% (2002: 34%).

Provisions increased 13% (£24m) to £205m (2002: £181m), consistent with growth in lending. Barclaycard has had high levels of customer recruitment over the last few years and its effect on provisions has been mitigated by a number of new risk management initiatives, such as improved collection processes.

Barclaycard International made a profit of £1m (2002: loss £15m) whilst maintaining significant ongoing investment. Income increased 45%, to £61m, and average extended credit balances rose by 41%. Barclaycard International cards in issue rose 3% to 1.32m (31st December 2002: 1.28m).

BARCLAYS PLC

Business Banking

Business Banking provides relationship banking to the Group’s large, medium and small business customers in the United Kingdom. Customers are served by a network of relationship and industry sector specialist managers who provide local access to an extensive range of products and services, as well as offering business information and support. Customers are also offered access to business centres in continental Europe and the United States and to the product suite and expertise of other businesses in the Group.

The strategy to accelerate business growth is underpinned by the Value Aligned Performance Measurement (VAPM) system which is linked to targets and reward. The VAPM outputs demonstrate the additional value that is now being generated through the acquisition of new customers, together with the strengthening and the expansion of relationships with existing customers.

In accordance with the Competition Commission Inquiry transitional pricing remedy, Business Banking offered qualifying SME customers interest on current accounts, or an alternative of discounted money transmission charges, with effect from 1st January 2003.


	Half-year ended

	30.06.03			31.12.02			30.06.02
	£m			£m			£m

Net interest income		813			828			798
Net fees and commissions		455			442			422
Other operating income		19			20			4

Operating income		1,287			1,290			1,224
Operating costs		(504	)		(520	)		(498	)
Provisions for bad and doubtful debts		(110	)		(146	)		(80	)
Profit/(loss) from associated undertakings		1			1			(3	)

Operating profit		674			625			643
Restructuring costs		(19	)		(28	)		(14	)
Woolwich Integration costs		—			—			(1	)

Profit before tax and exceptional items		655			597			628

Operating profit increased 5% (£31m) to £674m (2002: £643m), reflecting the combination of good income growth, strong cost management and well controlled risk. Operating income increased 5% (£63m) to £1,287m (2002: £1,224m).

Net interest income increased 2% (£15m) to £813m (2002: £798m). Average lending balances increased by 11% to £46.1bn and average deposit balances increased by 4% to £45.3bn. Lending margins were maintained and lending growth remained concentrated towards higher quality large business customers. The impact of the Competition Commission Inquiry transitional pricing remedy and the lower interest rate environment contributed to a fall in deposit margins.

Net fees and commissions increased 8% (£33m) to £455m (2002: £422m). Lending fees grew rapidly and reflected the growth in the balance sheet. Foreign exchange related commission grew due to increased business volumes. Money transmission income fell and was affected by the alternative offer to customers triggered by the Competition Commission Inquiry transitional pricing remedy. The migration to lower cost electronic payment methods continued.

BARCLAYS PLC

Operating costs increased 1% (£6m) to £504m (2002: £498m) with the impact of the pensions charge of £25m (2002: credit £13m) partially offset by significantly reduced costs in the middle and back office. The cost:income ratio improved to 39% (2002: 41%).

Provisions increased 38% (£30m) to £110m (2002: £80m), the increase being substantially attributable to provisions in respect of a small number of larger companies, with no particular industry concentration. The overall quality of the portfolio, as defined by risk grade, was stable.

BARCLAYS PLC

Barclays Africa

Barclays Africa provides banking services to personal and corporate customers in North Africa, sub-Saharan Africa and islands in the Indian Ocean. The portfolio comprises banking operations in Botswana, Egypt, Ghana, Kenya, Mauritius, Seychelles, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.

The integration of BNPI Mauritius, acquired in November 2002, has been completed.

Restructuring initiatives have continued to reposition the businesses to take account of the economic prospects and situations in the African countries where we operate. Some head office functions are being relocated from the United Kingdom to South Africa.


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Net interest income		89			84			76
Net fees and commissions		65			60			54
Other operating income		—			1			—

Operating income		154			145			130
Operating costs		(79	)		(71	)		(72	)
Provisions for bad and doubtful debts		(12	)		(17	)		(10	)

Operating profit		63			57			48
Restructuring costs		(5	)		(11	)		(5	)

Profit before tax and exceptional items		58			46			43

Barclays Africa operating profit increased 31% (£15m) to £63m (2002: £48m). The increase was mainly attributable to business growth resulting in a strong income performance. Operating profit continued to be adversely affected by the situation in Zimbabwe.

Net interest income increased 17% (£13m) to £89m (2002: £76m), the growth being largely attributable to the acquisition of BNPI Mauritius. There was a 7% increase in customer lending balances to £1.6bn (31st December 2002: £1.5bn) and a 4% rise in customer deposit balances to £2.6bn (31st December 2002: £2.5bn).

Net fees and commissions increased 20% (£11m) to £65m (2002: £54m), due to stronger business activity in Kenya and the acquisition of BNPI Mauritius.

Operating costs increased 10% (£7m) to £79m (2002: £72m), due to increased infrastructure investment and further development of the business. The cost:income ratio improved to 51% (2002: 55%).

Provisions increased £2m to £12m (2002: £10m).

BARCLAYS PLC

Barclays Capital

Barclays Capital is the investment banking division of Barclays, providing corporate, institutional and government clients with solutions to their financing and risk management needs.

The Barclays Capital business model is distinctive. It focuses on a broad span of financing and risk management services in the interest rate, foreign exchange, commodities and credit markets combined with certain capabilities in equities. Activities are split between two areas: Rates, which includes fixed income, foreign exchange, derivatives, commodities and money markets sales, trading and research, prime brokerage and equities; and, Credit, which includes origination, sales, trading and research relating to loans, debt capital markets and structured capital markets, and private equity.

Barclays Capital works increasingly with other Group businesses, including Barclays Private Clients, Business Banking and Barclays Global Investors, to provide a more integrated customer service and to develop business opportunities across the Group.

Barclays Capital continued progress in the global all debt league table rising to 4th position, from 6th in 2002, reflecting a strong performance in international bond issuance, particularly in the US and continental Europe. In the first half of 2003, Barclays Capital maintained its lead position in Sterling bonds.


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Net interest income		490			415			474
Dealing profits		526			320			507
Net fees and commissions		244			218			245
Other operating income		48			61			(2	)

Operating income		1,308			1,014			1,224
Operating costs		(758	)		(611	)		(701	)
Provisions for bad and doubtful debts		(131	)		(181	)		(153	)
Profit from associated undertakings		1			1			—

Operating profit		420			223			370
Restructuring costs		(6	)		(12	)		—

Profit before tax and exceptional items		414			211			370

Operating profit increased 14% to £420m (2002: £370m), due to higher operating income, good cost control and an improvement in the credit environment.

Growth in operating income of 7% to a record £1,308m (2002: £1,224m) was achieved whilst maintaining market risk at a similar level to the prior period with an average DVaR of £23m (2002: £22m). Net revenue (operating income less provisions) increased 10% to £1,177m (2002: £1,071m).

Secondary income, comprising dealing profits and net interest income, is primarily generated by providing client risk management and financing solutions. Secondary income increased 4% to £1,016m (2002: £981m). Dealing profits grew 4% to £526m (2002: £507m) with strong performances in corporate bonds partially offset by a lower contribution from US interest rate derivatives. Net interest income grew 3% to £490m (2002: £474m) driven by overall balance sheet growth. Corporate lending continued to be tightly managed, with the credit portfolio continuing to decline, falling to £9bn (31st December 2002: £10bn).

BARCLAYS PLC

Primary income, comprising net fees and commissions, remained in line with the prior year period at £244m (2002: £245m). Net fees and commissions included £40m (2002: £53m) of internal fees for structured capital market activities arranged by Barclays Capital.

Other operating income increased to £48m (2002: loss £2m), primarily due to realisations in the private equity business.

Operating costs increased 8% to £758m (2002: £701m). Business as usual costs were flat on the comparable period. Headcount declined 4% to 5,300 (31st December 2002: 5,500) as reductions in support staff outweighed the continued addition of front office staff. Revenue related costs increased as a result of strong performance. Staff costs remained at 51% of net revenues. Strategic investment continued in product and distribution capabilities.

Provisions decreased 14% to £131m (2002: £153m) reflecting improvement in the credit environment, particularly in the US.

BARCLAYS PLC

Barclays Global Investors

Barclays Global Investors is one of the world’s largest asset managers and a leading global provider of investment management products and services. Barclays Global Investors offers index, enhanced index and active strategies as well as related investment services such as securities lending, cash management and portfolio transition services. Barclays Global Investors investment philosophy focuses on managing all dimensions of performance: return, risk and cost.


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Net interest income		5			6			6
Net fees and commissions		306			255			283

Operating income		311			261			289
Operating costs		(220	)		(210	)		(229	)
Loss from joint ventures		—			(1	)		—

Operating profit before tax and exceptional items		91			50			60

Barclays Global Investors operating profit increased 52% (£31m) to £91m (2002: £60m), reflecting good income growth as a result of new asset growth, and lower costs.

Fees and commissions increased by 8% (£23m) to £306m (2002: £283m), with the increase constrained by foreign exchange translation movements of £37m and lower average market levels. Strong net new asset growth and investment performance and sales of higher margin products drove growth in investment management fees. Actively managed assets now generate over 60% of management fees and over 50% of total income.

The Global iShares (Exchange Traded Funds) business continued to grow assets. Global iShares assets have grown to £28bn, an increase of 27% (31st December 2002: £22bn).

Operating costs decreased 4% (£9m) to £220m (2002: £229m). Higher performance compensation costs were offset by the impact of foreign exchange translation movements of £26m.

Total assets under management increased 18% (£81bn) to £543bn (31st December 2002: £462bn). This was the net result of £34bn attributable to net new assets and £60bn attributable to market movements offset by £13bn of adverse exchange rate movements. Assets under management comprise £385bn (71%) indexed assets, £109bn (20%) active assets and £49bn (9%) managed cash assets.

BARCLAYS PLC

Other operations

Property costs include the costs of Barclays Group Property Services, which is responsible for the management of the Group’s operational premises and property related services.

Central services includes certain activities which support the operating business and provide central information technology services.

Transition Businesses comprising discontinued South American and Middle Eastern corporate banking businesses and the centrally managed Transition Businesses previously reported in Management of Group capital. These non-core relationships are now being managed separately with the objective of maximising the recovery from the assets concerned.

Management of Group capital encompasses certain central items, including internal fees charged by Barclays Capital for structured capital market activities.


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Property costs		(1	)		7			5
Central services		(8	)		(7	)		(10	)
Transition Businesses		(18	)		(38	)		(83	)
Management of Group capital		(19	)		(14	)		(29	)

Operating loss		(46	)		(52	)		(117	)
Restructuring costs		1			(4	)		(6	)

Loss before tax and exceptional items		(45	)		(56	)		(123	)

The improvement in the performance of Transition Businesses to a loss of £18m (2002: loss £83m) primarily relates to a significantly reduced provisions charge for various South American exposures.

Management of Group capital reflects £40m (2002: £53m) of internal fees charged by Barclays Capital for structured capital market activities.

Head office functions

Head office functions comprise all the Group’s central costs, including Group Executive, Group Finance, Corporate Communications, Human Resources, Group Strategy & Planning, Internal Audit, Marketing, Legal, Corporate Secretariat, Tax, Compliance and Risk. Costs incurred wholly on behalf of the business units are recharged to them.


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Operating cost		(60	)		(70	)		(39	)
Restructuring costs		(5	)		(8	)		(4	)

Total		(65	)		(78	)		(43	)

The increase in operating costs of £21m included a pension charge of £4m (2002: credit £2m).

BARCLAYS PLC

Restructuring charge


	Half-year ended

	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Staff costs		66		86		38
Administrative expenses — other		8		46		17

		74		132		55

The total restructuring charge is £74m, with the main elements relating to Personal Financial Services (£27m), Business Banking (£19m) and Barclays Private Clients (£9m).

Accrued provisions at 30th June 2003 for restructuring and closure costs amounted to £73m (31st December 2002: £117m). Expenditure of £66m was incurred during the year against provisions raised as at 31st December 2002 and £52m in respect of the 2003 programme.

Woolwich integration costs


	Half-year ended

	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Staff costs		—		1		1
Administration expenses — other		22		47		31

		22		48		32

Woolwich integration synergies


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Synergies achieved in the six months ended 30th June 2003 were as follows:
Gross revenue synergies		99			61			70
Attributable operating costs		(44	)		(36	)		(23	)

Net revenue synergies		55			25			47
Cost savings		75			65			39
Avoided costs¹		29			40			15

Ongoing integration synergies		159			130			101
One-off benefits		26			54			18
Tax savings		4			4			5

Total synergy benefits		189			188			124

Avoided costs are primarily strategic investment costs which are not required due to the acquisition and integration of Woolwich plc.

Total benefits of £189m were achieved by the programme in the half-year ending 30th June 2003. This comprises ongoing cost and revenue synergies totalling £159m, tax savings of £4m and gains totalling £26m which were of a one-off nature.

The Group is broadly on track to achieve £330m in cost and revenue synergies for the full year to 31st December 2003.

The Group expects to realise synergies of at least £400m per annum from 2004. This target is represented by annual cost savings of £150m per annum and revenue synergies, net of attributable costs, of £250m.

BARCLAYS PLC

Economic Capital

Barclays assesses capital adequacy by measuring risk using internal risk assessment methodologies. The Group assigns economic capital primarily within six risk categories. The categories are summarised below:

Credit Risk — Using statistical techniques, estimates are made of potential unexpected losses for each segment of the portfolio, relative to the expected level of losses. This unexpected loss level is used to estimate the amount of credit risk economic capital required.

Within wholesale and retail businesses, capital allocation is differentiated by segment and customer grade. Off-balance sheet exposures are converted to loan equivalent amounts based on their probability of being drawn, before applying capital factors.

Market Risk — Economic capital is primarily estimated using Daily Value at Risk (DVaR) measurements. Where risks are not measured using DVaR, economic capital is estimated based on stress test analysis.

Business and Operational Risk — A combined economic capital allocation for operational risk and business risk is derived through an equation including variables such as cost base, historic profit volatility and comparable external benchmarks.

Insurance Risk — Economic capital is estimated through benchmark analysis.

Fixed Assets — Economic capital is estimated through benchmark analysis.

Private Equity — Economic capital is allocated using an equation based on the amount of equity investment and comparable benchmark capitalisation.

Barclays estimates the correlation between risk types and calculates a diversification benefit which results in a reduction in allocated economic capital for the Group.

The total economic capital required by Barclays, as determined by its internal risk assessment models and after considering the Group’s estimated diversification benefits, is compared with available common shareholders’ funds to evaluate overall capital utilisation. The Group’s practice is to maintain an appropriate level of excess capital held at Group centre, which is not allocated to business units.

In light of the Basel II proposals, the Group is currently engaged in a project to review and enhance the economic capital allocation methodologies.

BARCLAYS PLC

Average economic capital by business is set out below:


		Average economic capital
		Half-year ended

		30.06.03		31.12.02		30.06.02

		£m		£m		£m
Personal Financial Services			2,450		2,000		2,200
Barclays Private Clients	— ongoing businesses		550		550		550
	— closed life assurance activities		250		300		300
Barclaycard			1,650		1,650		1,350
Business Banking			2,800		2,750		2,750
Barclays Africa			200		200		200
Barclays Capital			2,150		2,150		1,950
Barclays Global Investors			150		200		200
Other operations¹			500		500		600

Average economic capital			10,700		10,300		10,100
Goodwill			4,900		4,700		4,700
Capital held at Group centre²			1,000		900		900

Total average shareholders’ funds			16,600		15,900		15,700

1		Includes Transition Businesses.

2		The capital held at Group centre represents the variance between average economic capital by business and average shareholders’ funds.

Total average shareholders’ funds increased by £700m to £16,600m in the first half of 2003.

Goodwill increased £200m following the creation of FirstCaribbean and the purchase of Charles Schwab Europe.

Personal Financial Services economic capital allocation increased £450m due to improved quantification of credit risk capital requirements for long maturity assets, previously carried at Group centre.

BARCLAYS PLC

Risk Tendency

As part of its credit risk measurement system, the Group uses a model-based methodology to assess the quality of credits across different customer categories. The approach is termed Risk Tendency and applies to all performing credit exposures in both wholesale and retail sectors. Looking one year ahead, it provides a statistical estimate that is the average in the range of possible losses expected from the current performing portfolio. The actual outcome in any one year is likely to be different. Thus it is not a prediction of specific provisions but it gives management a clear view of the evolution of the quality of the credit portfolio.

The provisions in any particular period may be substantially affected by provision movements on loans that are already impaired at the start of the period (and which are not included in Risk Tendency). As more information becomes available, the provisions on such loans may be either increased or decreased.

Risk Tendency reflects the results of a set of model-based calculations, the models having been created using historical data. The models are designed to estimate the loss for the current performing loan portfolio, given the current composition and current risk characteristics of the portfolio. Significant variation around this value can occur, due to changes in the economic environment, the credit cycle or in the business conditions in specific sectors or countries that occur during the year. This applies especially in wholesale portfolios where the default of a small number of large exposures can have a significant impact on the outcome. However, for retail portfolios consisting of a very large number of small exposures, the variation from Risk Tendency is usually much smaller.

In addition to enhancing the understanding of the average credit quality of the portfolio, Risk Tendency is one of the measures used by the Group to inform a wider range of decisions, for example pricing, provisioning and portfolio management. The models assess the probability of customer default, the probable customer exposure at the time of default and the probable level of loss if default occurs. A consistent approach is used across the organisation. Decision support model outputs are a way of assessing what might happen in the future based on past experience. An increase in the size of the portfolio and/or a decrease in the credit quality will be highlighted by an increase in Risk Tendency.

A number of different models are used in the Risk Tendency calculation reflecting the diversity of the portfolio. They are being improved regularly as the Group collects more data and deploys more sophisticated techniques. The Group believes that each change will have a minor impact on the total result but should lead to better estimates over time.

Since Risk Tendency is a point in time calculation looking one-year ahead, it does not make allowance for growth or change in the composition of the loan book after the reporting date nor take account of write-backs and recoveries from specific provisions taken in previous years. In contrast, the provisions process is dynamic where provisions are assessed and allocated throughout the year.

Risk Tendency is used when allocating general provisions for the existing portfolio of fully performing credits as at the calculation date. Excluded from this portfolio is the subset of credit exposures relating to non-performing loans against which specific provisions are held.

Based upon the composition of the current performing loan portfolio as at 30th June 2003, Risk Tendency is £1,390m (31st December 2002: £1,375m; 30th June 2002: £1,300m).

BARCLAYS PLC

Risk Tendency (continued)

Increases in Risk Tendency occurred in Barclaycard due to rapid organic growth in the portfolio and in the Transition Businesses due to the transfer of credit exposures into that portfolio.

Reductions occurred in Personal Financial Services as the benefits of enhanced risk management flowed through. Risk Tendency also fell in Barclays Capital, as credit exposures declined slightly and conditions improved in the large corporate market and also due to the transfer of credit exposures into the Transition Businesses portfolio.


	Half-year ended

	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Personal Financial Services		340		370		370
Barclays Private Clients		45		45		50
Barclaycard		490		435		415
Business Banking		280		280		260
Barclays Africa		30		30		30
Barclays Capital		185		210		170
Transition Businesses		20		5		5

		1,390		1,375		1,300

BARCLAYS PLC

ADDITIONAL INFORMATION

Group structure changes from 2002

Within Barclays Private Clients, the contribution recognised from the closed life assurance activities is reported separately to provide increased transparency.

The Group has identified certain non-strategic operations in the Middle East which have previously been reported within Barclays Capital. These are now being separately managed with the objective of maximising the recovery from the assets concerned. These operations, together with South American Corporate Banking which was separately identified in 2002, and residual balances from other Transition Businesses that were previously included within Management of Group capital, are now separately reported as Transition Businesses within Other operations.

Acquisitions and disposals

On 31st January 2003, Barclays Bank PLC acquired the retail stockbroking business Charles Schwab Europe.

On 19th May 2003, Barclays Bank PLC completed the acquisition of Clydesdale Financial Services Limited and its holding company Carnegie Holdings Limited, a retailer point of sale finance business, with a value of £61m.

Accounting policies

There have been no significant changes to the accounting policies described in the 2002 Annual Report.

Changes in accounting presentation

The prior period presentation has, where appropriate, been restated to conform with current year classification, and changes in accounting policies as described in the 2002 Annual Report.

Share capital

The Group manages both its debt and equity capital actively. The Group’s authority to buy back ordinary shares was renewed at the 2003 Annual General Meeting to provide additional flexibility in the management of the Group’s capital resources. The Group expects to continue its share buyback programme following the publication of these results.

Group share schemes

The independent trustees of the Group’s share schemes may make purchases of Barclays PLC ordinary shares in the market at any time or times following this announcement of the Group’s results for the purposes of those schemes’ current and future requirements. The total number of ordinary shares purchased would not be material in relation to the issued share capital of Barclays PLC.

BARCLAYS PLC

ADDITIONAL INFORMATION

Filings with the SEC

The results will be furnished as a Form 6-K to the US Securities and Exchange Commission as soon as practicable following the publication of these results.

Other information

The interim report for the six months to 30th June 2003, including extracts from this announcement and the independent review report by the auditors, will be advertised in The Daily Telegraph and the Daily Mail on 8th August 2003. Copies will be available to the public at Barclays registered office and at its website www.investorrelations.barclays.co.uk

Recent developments

On 8th May 2003, Barclays Bank PLC announced its proposed acquisition of Banco Zaragozano, a Spanish private sector banking group. This acquisition was completed on 16th July 2003.

BARCLAYS PLC

NOTES (UNAUDITED)

Loans and advances to banks


	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Banking business:
United Kingdom		11,347			11,510			12,058
Other European Union		1,594			2,154			2,093
United States		377			256			730
Rest of the World		1,640			1,531			2,167

		14,958			15,451			17,048
Less — provisions		(21	)		(82	)		(159	)

		14,937			15,369			16,889
Trading business		52,534			42,805			40,951

Total loans and advances to banks		67,471			58,174			57,840

		Of the total loans and advances to banks, placings with banks were £57.1bn at 30th June 2003 (31st December 2002: £48.1bn; 30th June 2002: £48.3bn). Placings with banks include reverse repos of £43.3bn (31st December 2002: £41.0bn; 30th June 2002: £34.9bn). The majority of the placings have a residual maturity of less than one year.

2.		Loans and advances to customers


	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Banking business:
United Kingdom		141,420			135,900			127,219
Other European Union		15,255			12,579			12,326
United States		4,764			6,138			6,694
Rest of the World		6,540			5,599			8,341

		167,979			160,216			154,580
Less — provisions		(2,992	)		(2,916	)		(2,682	)
Less — interest in suspense		(75	)		(78	)		(83	)

		164,912			157,222			151,815
Trading business		59,447			45,176			47,211

Total loans and advances to customers		224,359			202,398			199,026

Of the total loans and advances to customers, reverse repos were £39.8bn (31st December 2002: £42.5bn; 30th June 2002: £38.5bn).

BARCLAYS PLC

Provisions for bad and doubtful debts


		Half-year ended

		30.06.03			31.12.02			30.06.02

		£m			£m			£m
Provisions at beginning of period			2,998			2,841			2,716
Acquisitions and disposals			14			(40	)		29
Exchange and other adjustments			2			(30	)		(47	)
Amounts written off
	United Kingdom		(560	)		(506	)		(444	)
	Other European Union		(15	)		(15	)		(16	)
	United States		(133	)		(82	)		(133	)
	Rest of the World		(7	)		(6	)		(18	)

			(715	)		(609	)		(611	)

Recoveries (analysed below)			62			65			41

Sub-total			2,361			2,227			2,128

Provisions charged against profit:
New and increased specific provisions
	United Kingdom		622			660			550
	Other European Union		30			16			17
	United States		71			147			257
	Rest of the World		48			38			34

			771			861			858

Less: Releases of specific provisions
	United Kingdom		(50	)		(43	)		(38	)
	Other European Union		(6	)		(6	)		(6	)
	United States		(4	)		(7	)		(3	)
	Rest of the World		(10	)		(11	)		(13	)

			(70	)		(67	)		(60	)

Less: Recoveries
	United Kingdom		(51	)		(57	)		(31	)
	Other European Union		(5	)		(5	)		(2	)
	United States		(6	)		(2	)		(7	)
	Rest of the World		—			(1	)		(1	)

			(62	)		(65	)		(41	)

Net specific provisions charge			639			729			757
General provision — charge/(release)			13			42			(44	)

Net credit risk charge to profit			652			771			713

Provisions at end of period			3,013			2,998			2,841

Total provision for bad and doubtful debts at end of period comprise:
Specific
United Kingdom			1,817			1,790			1,686
Other European Union			99			84			88
United States			187			257			199
Rest of the World			158			130			166

Total specific provisions			2,261			2,261			2,139
General provisions			752			737			702

			3,013			2,998			2,841

The geographic analysis of provisions shown above is based on the location of the office recording the transaction. Provisions raised in the US include amounts in respect of South American exposures booked in the US.

BARCLAYS PLC

Other assets


	30.06.03		31.12.02		30.06.02

	£m		£m		£m

Own shares		100		55		4
Balances arising from off-balance sheet financial instruments (see note 11)		16,039		13,454		13,383
Shareholders’ interest in long term assurance fund		799		867		844
London Metal Exchange warrants and other metals trading positions		472		829		701
Sundry debtors		2,545		1,634		2,687
Prepayments and accrued income		3,411		2,982		2,705

		23,366		19,821		20,324

		Own shares represent Barclays PLC shares held in employee benefit trusts where the Group retains the risks and rewards related to those shares.

5.		Other liabilities


	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Obligations under finance leases payable		129		140		155
Balances arising from off-balance sheet financial instruments (see note 11)		12,900		11,538		12,449
Short positions in securities		44,337		39,940		28,765
Current tax		731		641		786
Cash receipts from securitisation		241		318		491
Sundry creditors		4,700		3,987		4,597
Accruals and deferred income		4,476		4,352		3,772
Provisions for liabilities and charges		899		947		1,178
Dividend		456		788		422

		68,869		62,651		52,615

Cash receipts from securitisation are in respect of the securitisation of a portfolio of investment debt securities which did not qualify for linked presentation under Financial Reporting Standard 5.

BARCLAYS PLC

6.		Potential credit risk lendings

		The following table presents an analysis of potential credit risk lendings. The geographical presentation is based on the location of the office recording the transaction, and the amounts are stated before deduction of the value of security held, specific provisions carried or interest suspended.

		Non-performing lendings


	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Non-accrual lendings:
United Kingdom		1,638		1,557		1,471
Other European Union		116		108		113
United States		569		744		610
Rest of the World		132		133		202
Accruing lendings where interest is being suspended:
United Kingdom		428		472		640
Other European Union		44		44		39
United States		—		—		—
Rest of the World		91		95		132
Other accruing lendings against which provisions have been made:
United Kingdom		570		606		676
Other European Union		38		27		46
United States		—		—		8
Rest of the World		15		44		57
Sub-totals:
United Kingdom		2,636		2,635		2,787
Other European Union		198		179		198
United States		569		744		618
Rest of the World		238		272		391
Accruing lendings 90 days overdue, against which no provisions have been made:
United Kingdom		757		687		743
Other European Union		8		3		—
United States		—		—		—
Rest of the World		—		—		25
Reduced rate lendings:
United Kingdom		6		4		4
Other European Union		—		—		—
United States		—		—		—
Rest of the World		2		2		4
Total non-performing lendings
United Kingdom		3,399		3,326		3,534
Other European Union		206		182		198
United States		569		744		618
Rest of the World		240		274		420

		4,414		4,526		4,770

BARCLAYS PLC

Potential credit risk lendings (continued)


	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Potential problem lendings
United Kingdom		1,040		993		878
Other European Union		6		2		1
United States		203		241		224
Rest of the World		66		68		115

		1,315		1,304		1,218


	30.06.03		31.12.02		30.06.02

	%		%		%
Provision coverage of non-performing lendings
United Kingdom		73.4		73.5		64.4
Other European Union		72.8		71.4		63.1
United States		43.2		43.7		48.2
Rest of the World		82.1		65.0		53.3
Total		70.0		68.0		61.3
Provision coverage of total potential credit risk lendings		%		%		%
United Kingdom		56.2		56.6		51.6
Other European Union		70.8		70.7		62.8
United States		31.9		33.0		35.4
Rest of the World		64.4		52.0		41.9
Total		53.9		52.8		48.8

		The geographical coverage ratios included an allocation of general provisions.

		Since the year end, UK non-performing loans increased by £73m to £3,399m reflecting increases in both personal and corporate lending balances.

		US non-performing loans decreased by £175m to £569m as the exposures in this category were written off, restructured, upgraded, sold or otherwise worked out at a faster rate than new non-performing loans arose.

		Other European Union non-performing loans increased from £182m to £206m. However, in the Rest of the World they fell to £240m, a decrease of £34m.

		The coverage of non-performing loans by the Group’s stock of provisions increased from 68.0% at 31st December 2002 to 70.0% at 30th June 2003. The coverage of total potential credit risk lendings at 53.9% also increased from 52.8%.

BARCLAYS PLC

7.		Loans and advances to borrowers in currencies other than the local currency of the borrower

		At 30th June 2003, the countries where these outstandings exceeded 1% of total Group assets were United States, Germany, Switzerland and France. In this context, assets comprise total assets as presented in the consolidated balance sheet and include acceptances.

		Loans and advances to borrowers in currencies other than the local currency of the borrower for countries where borrowing exceeds 1% of total Group assets

As % of

assets

Total

£m

At 30th June 2003

United States

3.7

16,739

Germany

2.1

9,430

Switzerland

1.2

5,383

France

1.0

4,590

At 31st December 2002

United States

4.2

17,140

Germany

2.5

10,094

France

1.2

4,871

		As at 30th June 2003, Netherlands and the Republic of Ireland had such outstandings between 0.75% and 1% of total Group assets, amounting to £7,721m (31st December 2002: £7,552m).

8.		Legal proceedings

		Proceedings have been brought in the United States against a number of defendants including Barclays following the collapse of Enron. In each case the claims are against groups of defendants and it is not possible to estimate Barclays possible loss, if any, in relation to them. The US Courts have ordered that the proceedings be brought to a non-binding mediation, scheduled to commence in late September 2003. Barclays considers that the claims against it are without merit and is defending them vigorously.

		Barclays is engaged in various other litigation proceedings both in the UK and a number of overseas jurisdictions, including the US, involving claims by and against it, which arise in the ordinary course of business.

		Barclays does not expect the ultimate resolution of any of the proceedings to which Barclays is party to have a significant adverse effect on the financial position or profitability of the Group.

BARCLAYS PLC

Geographical analysis


		Half-year ended

		30.06.03		31.12.02			30.06.02

		£m		£m			£m
Profit before tax
United Kingdom			1,533		1,293			1,605
Other European Union			235		178			173
United States			67		(93	)		(125	)
Rest of the World			128		72			102

			1,963		1,450			1,755


		30.06.03		31.12.02			30.06.02

		£m		£m			£m
	Total assets
United Kingdom			342,329		302,386			286,080
Other European Union			28,421		26,126			23,523
United States			54,803		51,919			47,708
Rest of the World			21,178		22,635			32,397

			446,731		403,066			389,708

		The geographic presentation above is generally based on the office recording the transaction.

10.		Contingent liabilities and commitments

30.06.03

31.12.02

30.06.02

£m

Contingent liabilities

Acceptances and endorsements

2,259

2,589

2,391

Guarantees and assets pledged as collateral security

22,655

16,043

15,818

Other contingent liabilities

7,964

7,914

7,461

32,878

26,546

25,670

Commitments

Standby facilities, credit lines and other commitments

106,472

101,378

104,822

BARCLAYS PLC

11.		Derivatives

		The tables set out below analyse the contract or underlying principal amounts of derivative financial instruments held for trading purposes and for the purposes of managing the Group’s structural exposures.


	30.06.03		31.12.02		30.06.02

	£m		£m		£m
Foreign exchange derivatives Contract or underlying principal amount
Forward foreign exchange		336,079		271,646		275,692
Currency swaps		175,115		159,132		146,619
Other exchange rate related contracts		130,864		64,399		89,268

		642,058		495,177		511,579

Interest rate derivatives Contract or underlying principal amount
Interest rate swaps		2,471,207		2,164,312		1,837,304
Forward rate agreements		245,529		180,043		172,351
OTC options bought and sold		707,160		592,137		549,058
Other interest rate related contracts		1,341,117		788,878		647,727

		4,765,013		3,725,370		3,206,440

Credit derivatives		29,621		18,401		15,381

Equity, stock index and commodity derivatives
Contract or underlying principal amount		151,054		110,205		99,254

		Other exchange rate related contracts are primarily over the counter (OTC) options. Other interest rate related contracts are primarily exchange traded options and futures.

		Derivatives entered into as trading transactions, together with any associated hedging thereof, are measured at fair value and the resultant profits and losses are included in dealing profits. The tables below summarise the positive and negative fair values of such derivatives, including an adjustment for netting where the Group has the ability to insist on net settlement which is assured beyond doubt, based on a legal right that would survive the insolvency of the counterparty.


	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Positive fair values
Foreign exchange derivatives		12,071			10,639			11,282
Interest rate derivatives		73,905			62,942			36,851
Credit derivatives		828			660			568
Equity, stock index and commodity derivatives		3,716			2,750			2,295
Effect of netting		(70,106	)		(60,327	)		(37,027	)
Cash collateral meeting offset criteria		(4,375	)		(3,210	)		(586	)

		16,039			13,454			13,383

Negative fair values
Foreign exchange derivatives		12,335			11,281			12,348
Interest rate derivatives		70,990			61,332			35,815
Credit derivatives		476			106			236
Equity, stock index and commodity derivatives		4,215			2,778			2,694
Effect of netting		(70,106	)		(60,327	)		(37,027	)
Cash collateral meeting offset criteria		(5,010	)		(3,632	)		(1,617	)

		12,900			11,538			12,449

BARCLAYS PLC

12.		Market risk

		Market Risk is the risk that the Group’s earnings or capital, or its ability to meet business objectives, will be adversely affected by changes in the level or volatility of market rates or prices such as interest rates including credit spreads, foreign exchange rates, equity prices and commodity prices. It is incurred as a result of both trading and asset/liability management activities.

		The market risk management policies of the Group are determined by the Group Risk Oversight Committee, which also recommends overall market risk appetite to the Board Risk Committee. The Group’s policy is that exposure to market risk arising from trading activities is concentrated in Barclays Capital. The Group’s banking businesses are also subject to market risk, which arises in relation to non-trading positions, such as capital balances, demand deposits and customer originated transactions and flows.

		The Group uses a ‘value at risk’ measure as the primary mechanism for controlling market risk. Daily Value at Risk (DVaR) is an estimate, with a confidence level of 98%, of the potential loss which might arise if the current positions were to be held unchanged for one business day. Daily losses exceeding the DVaR figure are likely to occur, on average, only twice in every one hundred business days. Actual outcomes are monitored regularly to test the validity of the assumptions made in the calculation of DVaR.

		Market risk — Barclays Capital

		In Barclays Capital, the Head of Market Risk is responsible for the market risk governance and control framework. Day-to-day responsibility for managing exposure to market risk lies with the senior management of Barclays Capital, supported by the Global Market Risk Management Unit that operates independently of the trading areas.

		DVaR is the main tool used for controlling market risk. In addition to DVaR, there are a number of complementary techniques used to control market risk. These include revenue loss triggers and fortnightly firm wide stress tests which are also subject to trigger limits.

		Barclays Capital calculates DVaR using the historical simulation method with a historical sample of two years. The DVaR methodology allows the interest rate risk (due to changes in the benchmark government bond rates) to be measured separately from credit spread risk (due to changes in credit spreads). The credit spread is the premium for holding non-government paper, and is simply the difference between the total interest rate and the appropriate government interest rate. The DVaR numbers shown in the table below are all based on the above methodology.

		Overall market risk exposure for the first half of 2003 remained broadly unchanged compared to 2002. Total DVaR for the first half of 2003 averaged £23.0m compared to £22.4m for the first half of 2002 and £23.9m for the second half of 2002. Total DVaR as at 30th June 2003 was £24.6m.

BARCLAYS PLC

12.		Market risk (continued)

		Analysis of market risk exposures

		DVaR

Half-year ended

30.06.03

Average

High¹

Low¹

£m

Interest rate risk

20.7

27.7

13.7

Credit spread risk

11.7

16.0

8.9

Foreign exchange risk

2.9

5.0

1.3

Equities risk

2.5

3.8

1.7

Commodities risk

4.6

6.2

2.2

Diversification effect

(19.4

)

n/a

Total DVaR

23.0

29.5

17.6


	Half-year ended
	31.12.02

	Average			High¹		Low¹

	£m			£m		£m
Interest rate risk		22.5			34.5		10.0
Credit spread risk		9.9			12.1		7.7
Foreign exchange risk		3.0			4.3		1.9
Equities risk		3.8			5.4		2.1
Commodities risk		1.9			2.8		0.9
Diversification effect		(17.2	)		n/a		n/a

Total DVaR		23.9			35.7		13.4


	Half-year ended
	30.06.02

	Average			High¹		Low¹

	£m			£m		£m
Interest rate risk		20.8			29.9		13.1
Credit spread risk		8.8			12.5		6.0
Foreign exchange risk		2.9			4.4		2.0
Equities risk		3.4			4.3		2.7
Commodities risk		1.6			3.3		0.8
Diversification effect		(15.1	)		n/a		n/a

Total DVaR		22.4			30.5		14.4

The high (and low) DVaR figures reported for each category did not necessarily occur on the same day as the high (and low) DVaR reported as a whole. A corresponding diversification effect cannot be calculated and is therefore omitted from the above table.

BARCLAYS PLC

CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS’ FUNDS (UNAUDITED)


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Share capital
At beginning of period		1,645			1,661			1,668
Shares issued		1			5			2
Repurchase of shares		(8	)		(21	)		(9	)

At end of period		1,638			1,645			1,661

Share premium account
At beginning of period		5,277			5,176			5,149
Premium arising on shares issued		15			101			27

At end of period		5,292			5,277			5,176

Revaluation reserve
At beginning of period		24			30			30
Released on disposal		(2	)		(6	)		—

At end of period		22			24			30

Capital redemption reserve
At beginning of period		262			241			232
Repurchase of ordinary shares		8			21			9

		270			262			241

Other capital reserve
At beginning and end of period		617			617			617

Profit retained
At beginning of period		7,380			7,366			6,789
Profit retained		926			206			818
Exchange rate translation differences		36			(19	)		(42	)
Repurchase of ordinary shares		(8	)		(21	)		(9	)
Premium and legal costs on repurchase of ordinary shares		(111	)		(326	)		(190	)
Shares issued to Quest in relation to share option schemes for staff		—			(38	)		(10	)
Goodwill written back on disposals		—			—			10
Realisation of revaluation reserve		2			6			—
Other items		—			206			—

At end of period		8,225			7,380			7,366

Total reserves		14,426			13,560			13,430

Total shareholders’ funds		16,064			15,205			15,091

BARCLAYS PLC

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES (UNAUDITED)


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Profit attributable to the members of Barclays PLC		1,383			993			1,237
Exchange rate translation differences		34			(19	)		(42	)
Gains arising from transactions with third parties		—			206			—
Other items		(16	)		(2	)		10
Joint ventures and associated undertakings		18			—			2

Total recognised gains and losses relating to the period		1,419			1,178			1,207
Prior period adjustment		—			(37	)		14

Total gains and losses recognised in the period		1,419			1,141			1,221

BARCLAYS PLC

AVERAGE BALANCE SHEET AND NET INTEREST INCOME (UNAUDITED)


	Half-year ended

	30.06.03			30.06.03			30.06.03			30.06.02			30.06.02			30.06.02

	Average						Average			Average						Average
	Balance			Interest			Rate			Balance			Interest			Rate

	£m			£m			%			£m			£m			%
Assets
Treasury bills and other eligible bills:
In offices in the UK		4,772			65			2.7			4,611			88			3.8
In offices outside the UK		1,152			31			5.4			944			37			7.8
Loans and advances to banks:
In offices in the UK		11,715			281			4.8			13,273			254			3.8
In offices outside the UK		4,871			61			2.5			5,855			87			3.0
Loans and advances to customers:
In offices in the UK		133,980			3,886			5.8			122,677			3,785			6.2
In offices outside the UK		25,463			544			4.3			24,893			571			4.6
Lease receivables:
In offices in the UK		4,167			96			4.6			4,240			103			4.9
In offices outside the UK		263			9			6.8			219			8			7.3
Debt securities:
In offices in the UK		53,078			1,009			3.8			38,141			955			5.0
In offices outside the UK		4,207			111			5.3			5,470			149			5.4

Average assets of banking business		243,668			6,093			5.0			220,323			6,037			5.5
Average assets of trading business		189,544			3,439			3.6			151,781			2,233			2.9

Total average interest earning assets		433,212			9,532			4.4			372,104			8,270			4.4
Provisions		(2,800	)								(2,667	)
Non-interest earning assets		55,735									47,588

Total average assets and Interest income		486,147			9,532			3.9			417,025			8,270			4.0

Percentage of total average assets in offices outside the UK		27.1	%								29.4	%

Average interest earning assets and net interest income:
Banking business		243,668			3,237			2.7			220,323			3,134			2.8
Trading business		189,544			141			0.1			151,781			144			0.2
Non margin interest		—			(1	)		—			—			(1	)		—

Total average interest earning assets and net interest income		433,212			3,377			1.6			372,104			3,277			1.8

Total average interest earning assets related to:
Interest income					9,532			4.4						8,270			4.4
Interest expense					(6,154	)		(2.8	)					(4,992	)		(2.7	)
Adjustment for non margin interest					(1	)		—						(1	)		—

					3,377			1.6						3,277			1.8

1		Loans and advances to customers and banks include all doubtful lendings, including non-accrual lendings. Interest receivable on such lendings has been included to the extent to which either cash payments have been received or interest has been accrued in accordance with the income recognition policy of the Group.

2		Average balances are based upon daily averages for most UK banking operations and monthly averages elsewhere.

3		The average balance sheet does not include the retail life-fund assets attributable to policyholders nor the related liabilities.

BARCLAYS PLC

AVERAGE BALANCE SHEET AND NET INTEREST INCOME (UNAUDITED)

Half-year ended

30.06.03

30.06.02

Average

Balance

Interest

Rate

Balance

Interest

Rate

£m

Liabilities and shareholders’ funds

Deposits by banks:

In offices in the UK

40,867

486

2.4

32,279

487

3.0

In offices outside the UK

8,028

2.4

9,531

115

2.4

Customer accounts — demand accounts:

In offices in the UK

17,517

1.1

16,187

0.9

In offices outside the UK

2,055

1.4

1,662

1.6

Customer accounts — savings accounts:

In offices in the UK

44,849

508

2.3

41,020

473

2.3

In offices outside the UK

767

3.4

1,272

3.4

Customer accounts —

Other time deposits — retail:

In offices in the UK

33,271

568

3.4

37,768

670

3.5

In offices outside the UK

3,617

2.8

5,494

2.8

Customer accounts —

Other time deposits — wholesale:

In offices in the UK

55,263

830

3.0

34,429

512

3.0

In offices outside the UK

8,412

134

3.2

6,470

107

3.3

Debt securities in issue:

In offices in the UK

33,067

489

3.0

29,468

611

4.1

In offices outside the UK

12,650

124

2.0

12,132

157

2.6

Dated and undated loan capital and other subordinated liabilities

Principally in offices in the UK

12,159

345

5.7

10,467

308

5.9

Internal funding of trading business

(55,815

)

(894

)

3.2

(42,120

)

(724

)

3.4

Average liabilities of banking business

216,707

2,856

2.6

196,059

2,903

3.0

Average liabilities of trading business

190,567

3,298

3.5

152,125

2,089

2.7

Total average interest

bearing liabilities

407,274

6,154

3.0

348,184

4,992

2.9

Interest free customer deposits:

In offices in the UK

12,807

10,926

In offices outside the UK

1,170

2,265

Other non-interest bearing liabilities

49,020

40,511

Minority interests and shareholders’ funds

15,876

15,139

Total average liabilities, shareholders’ funds and interest expense

486,147

6,154

2.5

417,025

4,992

2.4

Percentage of total average non-capital liabilities in offices outside the UK

24.0

27.2

BARCLAYS PLC

SUMMARY CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)


	Half-year ended

	30.06.03			31.12.02			30.06.02

	£m			£m			£m
Net cash inflow from operating activities		1,400			5,040			2,351
Dividends received from joint ventures and associated undertakings		1			1			—
Net cash outflow from returns on investment and servicing of finance		(294	)		(380	)		(250	)
Tax paid		(378	)		(557	)		(271	)
Net cash inflow /(outflow) from capital expenditure and financial investment		771			(6,285	)		(471	)
Net cash outflow from acquisitions and disposals		(17	)		(186	)		(426	)
Equity dividend paid		(787	)		(421	)		(725	)

Net cash inflow/(outflow) before financing		696			(2,788	)		208
Net cash inflow from financing		891			519			854

Increase/(decrease) in cash		1,587			(2,269	)		1,062

BARCLAYS PLC

OTHER INFORMATION

Registered office

54 Lombard Street, London, EC3P 3AH, England, United Kingdom. Tel: 020 7699 5000.
Company number: 48839.

Website

www.barclays.com

Registrar

The Registrar to Barclays PLC, PO Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 7NH.
Tel: 0870 702 0196.

Listing

The principal trading market for Barclays PLC ordinary shares is the London Stock Exchange. Ordinary shares are also listed on the New York Stock Exchange and the Tokyo Stock Exchange. Trading on the New York Stock Exchange is in the form of ADSs under the ticker symbol ‘BCS’. Each ADS represents four ordinary shares of 25p each and is evidenced by an ADR. The ADR depositary is The Bank of New York whose international telephone number is +1- 610-312-5315, whose domestic telephone number is 1-888-269-2377 and whose address is 22nd Floor, 101 Barclay Street, New York, NY 10286.

Filings with the SEC

Statutory accounts for the year ended 31st December 2002, which also include the joint annual report on Form 20-F of Barclays PLC and Barclays Bank PLC to the US Securities and Exchange Commission (SEC), can be obtained from Corporate Communications, Barclays Bank PLC, 200 Park Avenue, New York, NY 10166 or from the Head of Investor Relations at Barclays registered office address shown above. Copies of the Form 20-F are also available from the SEC’s website: http://www.sec.gov


Results timetable Ex dividend date: Dividend record date: Dividend payment date: 2003 Full year pre close date: 2003 preliminary results announcement: 2004 Annual General Meeting:		Wednesday 13th August 2003 Friday 15th August 2003 Wednesday 1st October 2003 Tuesday 2nd December 2003 Thursday 12th February 2004 Thursday 29th April 2004

For further information, please contact:		John Varley Group Finance Director +44 (0)20 7699 5000 — Switchboard

		Cathy Turner Head of Investor Relations +44 (0)20 7699 3638 — Direct Line

		James S. Johnson Senior Manager, Investor Relations +44 (0)20 7699 4525 — Direct Line

		Leigh Bruce Corporate Communications Director +44 (0)20 7699 2658 — Direct Line

		Chris Tucker Public Relations Director +44 (0)20 7699 3161 — Direct Line

More information on Barclays, including these 2003 interim results, can be found on our website at the following address: http://www.investorrelations.barclays.co.uk

BARCLAYS PLC

Index of Main Reference Points


Absolute value			10
Accounting policies			50
Acquisitions and disposals			50
Administrative expenses			23, 25
Associates and joint ventures			27
Average balance sheet			64
Balance sheet (consolidated)			14
Barclaycard			36
Barclays Africa			40
Barclays Capital			41
Barclays Global Investors			43
Barclays Private Clients			34
Business Banking			38
Capital ratios			30
Capital resources			29
Cash flow (consolidated)			66
Changes in accounting presentation			50
Contingent liabilities and commitments			58
Cost goal			11
Dealing profits			19
Depreciation and amortisation			25
Derivatives			59
Dividends on ordinary shares			28
Daily Value at Risk (DVaR)			60
Earnings per ordinary share			28
Economic capital			46
Economic profit			10
Exceptional items			27
Financial highlights			4
Geographical analysis			58
Group share schemes			50
Group structure changes from 2002			50
Half-year review			5
Head office functions			44
Key facts			8
Legal proceedings			57
Loans and advances to banks			52
Loans and advances to customers			52
Market risk			60
Net asset value			4
Net fees and commissions			18
Net interest income			16
Operating expenses			21
Operating profit			1, 4, 12, 13, 15
Other assets			54
Other information			51,67
Other liabilities			54
Other operating income			20
Other operations			44
Performance goals			9
Performance ratios			4
Personal Financial Services			32
Potential credit risk lendings			55
Profit and loss account (consolidated)			13
Profit and loss account (further analysis)			15
Profit before tax			12
Provisions for bad and doubtful debts			26,53
Recent developments			51
Restructuring charge			45
Results timetable			67
Risk asset ratios/capital ratios			30
Risk Tendency			48
Share capital			50
Staff costs			24
Staff numbers			23
Statement of changes in shareholders’ funds (consolidated)			62
Statement of total recognised gains and losses			63
Tax			27
Total assets			12,31
Total shareholder return			10
Value Based Management			9
Weighted risk assets			12,30
Woolwich integration costs			45
Woolwich integration synergies			45
Yields, spreads and margins — banking business			17

Barclays Bank PLC
7th August 2003

BARCLAYS BANK PLC
BARCLAYS BANK PLC IS A WHOLLY OWNED SUBSIDIARY OF BARCLAYS PLC

INTERIM RESULTS ANNOUNCEMENT FOR 2003 (UNAUDITED)

The Directors report the following results of the Barclays Bank PLC Group for the half-year ended 30th June 2003:


	30.06.03			30.06.02

	£m			£m
Profit on ordinary activities before tax		1,963			1,755
Tax on profit on ordinary activities		(567	)		(509	)

Profit on ordinary activities after tax		1,396			1,246
Minority interests — equity and non-equity		(13	)		(9	)

Profit attributable to members of Barclays Bank PLC		1,383			1,237
Dividends payable to Barclays PLC		(576	)		(628	)

Profit retained		807			609

Total assets		446,731			389,708

Liabilities:
Deposits by bank		93,201			81,185
Customer accounts		198,116			173,534
Debt securities in issue		48,431			46,899
Other liabilities		70,531			54,011
Undated loan capital — convertible to preference shares		—			328
Undated loan capital — non-convertible		6,570			5,454
Dated loan capital — convertible to preference shares		11			—
Dated loan capital — non convertible		5,972			5,203

		422,832			366,614

Minority interests and shareholders’ funds:
Minority interests — equity and non-equity		193			124

Issued and fully paid share capital		2,294			2,288
Share premium account		5,618			5,502
Revaluation reserve		22			30
Profit and loss account		8,130			7,271

Shareholders’ funds — equity		16,064			15,091

		16,257			15,215

Retail life-fund liabilities attributable to policyholders		7,642			7,879
Total liabilities and shareholders’ funds		446,731			389,708

NOTES

1.		The whole of the issued ordinary share capital of the Bank is beneficially owned by Barclays PLC.

2.		Profit on ordinary activities before tax includes the Group’s profit from joint ventures and associates of £10m (30th June 2002: loss £4m).

3.		The Group had contingent liabilities of £32,878m (2002: £25,670m) comprising acceptances and endorsements of £2,259m (2002: £2,391m), guarantees and assets pledged as collateral security of £22,655m (2002: £15,818m) and other contingent liabilities of £7,964m (2002: £7,461m).

4.		The 2002 interim results have been restated in accordance with the accounting policies described in the 2002 Annual Report.