February 13, 2020 / 7:16 AM / 5 days ago

BRIEF-Barclays says 'more challenging' to achieve 10% return in 2020

Feb 13 (Reuters) - Barclays PLC:

* WE CONTINUE TO BELIEVE THAT IT IS APPROPRIATE TO TARGET A RETURN GREATER THAN 10%

* HOWEVER, GIVEN THE LOW INTEREST RATE ENVIRONMENT, IT HAS BECOME MORE CHALLENGING TO ACHIEVE THAT TARGET IN 2020

* NEVERTHELESS, BUSINESS CONTINUED TO DELIVER STRONG GROWTH IN BALANCES, INCREASING MORTGAGE LENDING BY £6.4BN AND GROWING DEPOSITS BY £8.2BN.

* CREDIT IMPAIRMENT CHARGES DECREASED 14% TO £712M REFLECTING NON-RECURRENCE OF A £100M SPECIFIC CHARGE IN Q418 RELATING TO IMPACT OF ANTICIPATED ECONOMIC UNCERTAINTY IN UK.

* LOANS AND ADVANCES TO CUSTOMERS AT AMORTISED COST INCREASED 3% TO £193.7BN REFLECTING £6.4BN OF MORTGAGE GROWTH

* CUSTOMER DEPOSITS AT AMORTISED COST INCREASED 4% TO £205.5BN DEMONSTRATING FRANCHISE STRENGTH ACROSS BOTH PERSONAL AND BUSINESS BANKING

* RWAS WERE STABLE AT £74.9BN (2018: £75.2BN) AS A REDUCTION IN UK CARDS (REFLECTING INCREASED DEBT SALES, LOWER IEL BALANCES AND AN IMPROVED RISK PROFILE) WAS OFFSET BY GROWTH IN MORTGAGES

* GROUP NIM DECREASED 11BPS TO 3.42% AND BARCLAYS UK NIM DECREASED 14BPS TO 3.09%, PRIMARILY REFLECTING INCREASED REFINANCING ACTIVITY BY MORTGAGE CUSTOMERS AND COMPETITIVE PRESSURE Source text for Eikon: Further company coverage:

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