Banking StandardsLetter from Sir David Walker, Chairman, Barclays

Thank you for your letter of 25 March about Barclays’ 2012 Total Incentives Pool.

You asked for a breakdown of the £860 million figure that we provided. This information is published in our Annual Report for 2012 of which I enclose the relevant pages1 (80 and 81) for your information. As I explained in my previous letter, the incentives pool was reduced by £860 million to reflect risk and compliance events in 2012. Within this total, the pool was reduced by £290 million reflecting the LIBOR fines and £570 million to reflect redress of other risk events including PPI and Interest Rate Hedging Products.

On top of the £860 million specified above:

Our Annual Report details an additional reduction to our 2012 incentives pool of £250 million to reflect Barclays’ intention to reposition its remuneration in the market; and

Our Annual Report also details the decision ofthe Board Remuneration Committee to claw back approximately £300 million of unvested deferred and long-term awards for 2012. The majority of this was in relation to the LIBOR investigation.

I trust that the information in this letter and the detail published in our Annual Report addresses your query fully.

3 April 2013