Barclays Plc · LSE:BARC
Barclays — IPO Roadshow (November 2014)
50 slides from Barclays's IPO roadshow presentation, Nov 3, 2014
Slide 1: Fixed Income Investor Presentation Q3 2014 IMS
Free Writing Prospectus Filed Pursuant to Rule 433 Reg. Statement No. 333-195645 Free Filed Reg. Barclays Fixed Q3 30 October 2014 Writing Statement Pursuant Income Interim PLC2014 Prospectus Investor toNo. Management Rule 333-195645 433 Presentation Statement
Slide 2: Performance Overview
PERFORMANCE 2Performance | Fixed Income Overview Investor OVERVIEW Presentation – Q3 2014 IMS
Slide 3: Performance Summary
PERFORMANCE Summary Nine Total Impairment Income NCI Tax –Adjustments Spanish Return 2013 21,257 4,717 (741)(826) (164)(309) (14,144)(13,186) (2,353)(1,595) 2,583 (629)(721) (1,505)(1,630) (125) 259 (2,000)(910) 2,851 –(364) –(500) 1,182 6.6% Financial Steady Adjusted Group Barclays Statutory 31Q3 L
Slide 4: Strengthening Balance Sheet Key Metrics
PERFORMANCE Strengthening Total (£bn) Balance BCBS Sheet CRD Capital Risk Net Loan Jun-14 1,315 1,353 3.4% 9.9% 40.8 45.4 411 107% 98% 92% 179 Key Highlights Fully Liquidity LCR Funding |Wholesale 4EBA agreements 1Estimates | Fixed Stable 413 178 balance 42.0 46.6 –4 90% weighted technical was asset
Slide 5: Core Performance
OVERVIEW PERFORMANCE Nine Total –Impairment NCI Tax Adjusted Average Return Basic CRD BCBS 2013 19,414 (1,629) (12,174) (104) (306) 5,682 (1,666) (537) 3,479 £35bn 16.9% 13.3% 63% 25.6p Jun-14 £324bn c.£970bn Financial -Good Income Net Continued Cost 51Core Africa PCB Investment Average Litigation |
Slide 6: Barclays Non-Core
Barclays OVERVIEW PERFORMANCE Nine Income Total –Impairment(724)(166) Tax NCI Attributable Financial Return Basic Jun-14 CRD BCBS Loss Highlights banking 2013 The Average 61Reduced Average |Costs Fixed 161 income and before months CTA operating IV EPS leverage on Sep-14 to 1,843 activity 144 allocat
Slide 7: Capital & Leverage
CAPITAL Capital 7LEVERAGE | Fixed&Income Leverage & Investor Presentation – Q3 2014 IMS
Slide 8: Progressive CRD IV CET1 Capital Ratio
CAPITAL Progressive Spain 9.9% 10.5% >11% c.20bps2 9.1% Estimated 3.4% >4% Dec-13 3.0% Milestone Continue Highlights RWAs Fully The Leverage exposures 1Confident revised 8understanding |Based Fixed estimated 10.2% 3.5% loaded 10.4% remained by Jun-14 on Income to ratio Target BCBS that & £6.9bn 3.5%
Slide 9: RWAs: Highlights
RWAs: 411 Highlights c.8 RWAs Underlying Model Upon As Jun-14 methodology 91updates |Estimate Fixed Non-Core 12Spain 4(7) completion (£bn) were changes Model Well growth Income 3as reductions up 413 managed business announced isand marginally mainly run-down, Investor of Core theto run-down in impac
Slide 10: Evolution of Capital Requirements
CAPITAL LEVERAGE Evolution Total 16.4% 1.8% (£14.5bn) 3.5% Legacy 1.1% CCCB/ ?17% CET1 (£41.4bn) 10.0%1 buffers 3.1% Max Internal 2.5% G-SII 2.0% 1.4% 4.5% Barclays’ Robust AT1 T2 Continued Fully Further capital; Pillar -As 1Individual distribution 2014 systemic approaches minimum 10 AT1 T2 CET1 Dif
Slide 11: Progressive CRD IV Regulatory Requirements
CAPITAL Progressive LEVERAGE Regulatory CRD Fully PRA Barclays Estimated 10.5% 10.2% as 7% 1.4% 4% 2014 Key CET1 Pillar Combined In Countercyclical Internal |1Note: 1Being 2019, at | 4.5% 7% Fixed assumptions 30-Sep-2014 regulatory 2015 IV 1.4%2 loaded 2A during minimum 11.5-12% <1.5% 4.5% managemen
Slide 12: Capital Trajectory and Distributions
CAPITAL We LEVERAGE Minimum Pillar Capital G-SII Trajectory Distributions Sliding 12% 11.5-12% 10.2% 10.5% 10% 8.2% 8% 0.5% 6% 1.4% 2% 4% Q3 0% Estimated To Mandatory As on CBR Until 1fully >11% least CET1 Barclays 12This AT1 |aMDA outlined 14 intend 7% 0.6% 4.0% Fixed reducing annual >11.0% 9.3% ph
Slide 13: Steady Progress on BCBS Leverage Ratio
CAPITAL Steady LEVERAGE L&A BCBS SFTs Undrawn Derivatives 3.4% 1,353 105 228 288 732 H1 Estimated Highlights Continue 1IFRS optimisations and 13Estimates |14 other Fixed 110 192 279 743 and 3.5% reverse derivatives 1,324 Q3 leverage progression to commitments adjustments other 14 Income BCBS &based
Slide 14: Liquidity & Funding
LIQUIDITY Liquidity FUNDING 14 | Fixed& Income Funding & Investor Presentation – Q3 2014 IMS
Slide 15: Balance Sheet Funding Structure
LIQUIDITY FUNDING Balance Reverse Derivatives, Repo, £680bn funding Matched Group 99% <1 LDR2 >1 Other Equity, Total Derivative Highlights Trading Customer LDR Decreasing 1Liquidity securities 15Matched |year Fixed Assets for Liabilities assets3, matched liabilities4, 160 61 wholesale portfolio shee
Slide 16: Maintaining High Liquidity Pool
LIQUIDITY Maintaining FUNDING High Cash Other 150 19 127 46 43 85 62 74 2012 Metric LCR2 NSFR3 Surplus 2013 LRA Buffer Key Further Quality 85% Over Even Additional Continued Estimated 1Rules on from the 16Includes 22 |a50 Basel Fixed 146 messages semi-annual held non-banks. 104% 86% quality 2013 Jun
Slide 17: Significant Customer Deposit Funding
LIQUIDITY FUNDING Significant 110% 101% 424 300 Deposits L&A Total Customer Short-term £540bn 16% 20% 7% 4% 53% 2012 Key Group Excess In 2014 £4bn We 1Secured 17LDR line | will maintain intend 5% 7% Fixed 429 385 messages 14% 62% 2013 Funding of funding to 99% LDR Loan with for customer 4% £522bn te
Slide 18: Wholesale Funding Maturity Profile
LIQUIDITY Continue FUNDING Wholesale 7% Deposits 27% 3% 15% CDs Public ABCPs Privately Covered Subordinated Other 10% 11% 18% 6% 14% 24% 12% £1 >1 >3 >6 >9 > By As Key Overall 2012 £85bn £4bn c.£1.6bn £1.5bn 1We £23bn secured 18Given 521|month mth mths at remaining currency1 have year years 13% Fixe
Slide 19: Asset Quality
ASSET Asset 19 | Fixed quality QUALITY Income Investor Presentation – Q3 2014 IMS
Slide 20: Continued Improvement in Asset Quality
ASSET Continued Q3 1,429 1,629 4,569 31-Dec-13 90-day 0.7% Q1 PCB Africa Impairment The UK South 20 |YTD 13 mortgages mortgage Fixed CRL benefitted 4,466 Africa African Q2 Banking delinquency QUALITY 13 coverage 13 Income strong 30-Sep-14 charge allowance continued allowances Q3 mortgages Q3 delinqu
Slide 21: Declining Loan Loss Rate
ASSET Retail 311 162 85 54 Personal Africa Wholesale H1 38 24 14 919 (4) Investment & Declining Highlights The Group 1LLR 21 Annualised 11 Africa 82 52 19 36 27 |13 (2) 14 Fixed 301 139 Group =80 loan Q3 Banking impairment LLRs Annualised QUALITY & 78 Banking Loan 14 Income loan annualised loss Bank
Slide 22: Reduced Spain and Eurozone Periphery Exposures
ASSET Reduced Spain 4.9 7.9 6.3 20.6 22.7 23.5 Exposures Sovereign Residential 6.2 59.0 5.8 31.3 32.5 5.0 9.2 5.7 5.4 2012 Key Active Exposure Barclays 30 -Local Completion 1We 22 Spain: Portugal: Italy: As|June 6.7 4.6 52.8 47.2 6.9 6.2 6.5 continue Fixed Messages 19.8 19.2 29.3 at 2013 net Italy m
Slide 23: Barclays Non-Core Businesses
ASSET Barclays Businesses 8Derivatives 110 933 210 44 50 27 28 73 c.385 24 180 43 Dec-13 Target RWA Highlights RWAs On Leverage 1BCBS the 23 97Portion c.7 81 c.7 26 |20 requirements completion Fixed Spain reduction reductions 80 317 19 Target reduced leverage Jun-14 QUALITY Non-Core: of exposure Inc
Slide 24: Credit Ratings
CREDIT Credit 24 | Fixed ratings RATING Income Investor Presentation – Q3 2014 IMS
Slide 25: Barclays' Current Credit Ratings
CREDIT Barclays’ As Barclays Standard Stand-Alone Moody’s Bank Fitch Viability Long DBRS Short Key 8Current Negative On 25May |at aFixed Messages standalone 30 Term Financial strategy ratings September Rating PLC & RATING outlooks credit Income A- A3 A n/a A-2 P-2 F1 Poor’s Credit (Stable) Barclays
Slide 26: Contractual Rating Downgrade Impact
CREDIT Barclays Contractual (as (£bn) Securitisation Contingent Derivatives Liquidity Total Potential The 1all 26These credit |atFixed table cumulative 14 31 One-notch numbers 17 December manages rating outflows RATING facilities on Income liabilities margining—1 credit the derivatives agencies1 rig
Slide 27: Business Summary
CREDIT Business Summary Liquidity Leverage Capital Regulation Concentrating Strengthened Building Estimated Planned Diversified Robust Proactive Established 27 | Fixed liquidity reduction on model RATING & and Income BCBS international funding track funding good capital practical onposition, leverag
Slide 28: Appendix—Strategy
APPENDIX 28 Appendix—Strategy STRATEGY | Fixed Income - Investor Presentation – Q3 2014 IMS
Slide 29: Repositioning Barclays
APPENDIX Repositioning Rightsizing Establishing Allocating 29 | Fixed Income capital and a-STRATEGY and dedicated focusing to Investor simplifying growth Non-Core thePresentation businesses Investment Barclays unit Delivering and –Bank Q3a new 2014Personal aIMS structurally & Corporate lower cost Ba
Slide 30: Transform Financial Commitments
APPENDIX 12016 43Group 5Adjusted Barclays 30Capital Dividend Returns Cost | Fixed Transform 2<£14.5bn Leverage Core Non-Core operating CRD Adjusted Income Payout –STRATEGY IVfinancial Investor FL Leverage ratio expenses RoE 6 Returns CET1 40-50% >12% commitments Presentation ratio Drag>4.0% >11.0% o
Slide 31: Reorganising Barclays Core and Non-Core
APPENDIX Reorganising STRATEGY Personal Barclaycard Africa Investment PBT Barclays LBT RWAs Adjusted Income Impairment Operating 1Profit 31 All | Fixed £2,257m £1,126m £756m £1,342m £648m figures before Banking £120.0bn £38.6bn £37.9bn £127.9bn £81.0bn £18.7bn & Group1 Non-Core results2 Income expen
Slide 32: Building Core Investment Bank
APPENDIX STRATEGY Building Core •FY Global Securitised Right-sized Municipals Foreign Fixed Rates and electronic ECM Build Structurally Improve Non-core RWAs: Exit Markets Most Certain Capital Principal Front-to-back Banking Credit 1Investments 32 Preliminary May Cash Equity RWAs: CRD | 2013 collate
Slide 33: Investment Bank Returns and Leverage
APPENDIX <15% 2013 returns Leverage RWAs BNC c.55% Retail Commercial 214 Core 46% Investment c.200 Bank 222 28% 1The 33 Preliminary May 2016 | Fixed 49% Core (excl. c.120 (excl. pre-resegmentation BNC 51% and £436bn leverage IB exposure Investment Income 26% reallocating c.120 IB) IB) Maintained num
Slide 34: Evolving Profit Mix
APPENDIX Evolving Profit Non- Personal Investment Africa 2,156 1,342 Barclaycard 846 927 756 12,257 34Excluding | Fixed 1,126 Investment 1,907 before Banking and balance Income Bank Head -STRATEGY tax Corporate of Bank of Office Investor Core the76% 63% Banking Core business: | Presentation business
Slide 35: Core RoE Targets
APPENDIX STRATEGY C % c.3 Non-Core c.12 c.6 4.5 6.1 1.0 3.5 >9% Average 2013 c.36 Core Net Growth Continuous Returns Europe 35 Preliminary May ore |c.9-10 drag 1.6 Core Fixed 48-50 >12 Core businesses Statutory Group retail in target <3% allocated cost Income our RoE optimisation numbers - savings t
Slide 36: Litigation and Conduct Costs and Cost Savings
APPENDIX 4,282 4,500 (14%) 4,734 (8%) Q1 3,879 4,042 4,130 Litigation Conduct Costs 0.8 0.7 1.3 FY CTA Operating Personal Africa Barclaycard Investment 2,600 709 1,326 542 54 117 589 Non-Core Core2 Increased model capabilities Savings Front 1Business 36Excluding |13 14 0.2 Fixed YTD outlook spend Of
Slide 37: Group Cost Targets
APPENDIX Group Original 19 17 c.17 18 Costs £1.2bn nC Core 2013 <14.5 c.16.2 1c.(10%) 37ore Excludes 18.7 |c. Fixed 17 cost 2014 2016 tocost Cost c.£1.3b c.(9%) achieve Group targets1 targets Income 2015 provisions guidance1 targets -STRATEGY c.(13%) c.£0.7bn2 cost Transform (£bn) Investor target (£
Slide 38: Appendix-Data
38 | Fixed Income Investor Presentation – Q3 2014 IMS Appendix-Data APPENDIX-DATA
Slide 39: Core Net Interest Income
APPENDIX-DATA Core Nine Personal Investment Total Net 410 416 400 273 Q3 Steady PCB Barclaycard Africa NIM NII 1Average 39Includes |13 for interest Fixed 410 403 Customer 328 grew customer income months increased Core Q4 Banking performance these 273 customer and 13 Income Head NII Income1 Bank marg
Slide 40: Capital Resources
Capital APPENDIX-DATA Shareholders’ (£m) Less: Adjustment Minority Additional Goodwill Deferred Fair Negative Gains Other Direct Regulatory CRD Fully PRA 30 58,068 (4,326) (596) 1,171 (2,492) (7,828) (1,062) (532) (2,036) 612 (172) (25) 40,782 (513) 40,269 410,987 9.9% 19.8% Technical as 40The appli
Slide 41: Estimated BCBS Leverage Exposure
Estimated APPENDIX—DATA BCBS Derivative (£bn) Cash Reverse Loans Derivatives Adjustments Net Potential Securities Regulatory Weighted Total CRD Fully 30 333 60 172 750 1,315 (298) (31) 29 195 (105) 56 (18) 105 1,353 40.8 4.6 45.4 13.4% 41Estimates June 60 28 |34 4.6 written Fixed 383 158 765 195 110
Slide 42: Wholesale Funding Composition
Wholesale APPENDIX—DATA As Deposits Certificates Asset (public Senior (private Covered Subordinated Other2 Of 3?1 1.3 1.5 2.8 10.0 15.7 4.6 16.5 5.0 21.5 3.2 2.4 8.8 6.8 >3 20.3 3.7 24.0 18.5 6.7 25.2 >6 >9 >1 >2 >5 1.0 Total 6.4 0.1 2.5 -0.2 0.7 11.0 0.9 10.1 15.5 1.4 114.1 settlement European 42 .
Slide 43: Reduced Eurozone Exposures
Reduced APPENDIX—DATA As Sovereign Financial Corporate Residential Other Total1 1Total 43 Total |atFixed as 30 retail 17,317 net at June exposure institutions Income 2,736 134 31 on-balance mortgages lending December 2014 19,832 1,898 1,377 Investor to(£m) 1,984 165 the 753 5,418 sheet 11,710 653 20
Slide 44: Statutory Bail-in Overview
APPENDIX—DATA Statutory Overview European statutory requirement losses certain powers principle UK Considerations The Liabilities greater Guiding In the Note, rather 44 line light |scope Banking bail-in Fixed BRRD scope the itto with liabilities than to of clarifies principle its “bail-in” that incl
Slide 45: Basel III / CRD IV Regulatory Timeframe
APPENDIX—DATA Timeframe H1 Capital Net Liquidity Intraday FSA/PRA’s [Graphic Fully Capital: stress) CRD 1NSFR: banks compliance intraday UK 45Basel |2010 Stable banks Fixed IV—Regulatory IV phased-in cash and available requirements •minimum liquidity leverage Leverage: 1Appears LCR: Coverage Income
Slide 46: Contact—Debt Investor Relations Team
Contact—Debt Richard Sofia +44 Website: sofia.lonnqvist@barclays.com richard.caven@barclays.com 46 | Fixed (0)20 Lonnqvist Caven barclays.com/barclays-investor-relations.html Income 7116 Investor 2809 5716 Investor Relations Presentation Team – Q3 2014 IMS
Slide 47: Important Notice and Forward-looking Statements
Important Disclaimer The instruments Forward-looking This with future historical ‘achieve’ savings, expenditures because evolving provisions, capital, conditions; valuation implementation Group’s factors Any required publicly any LSE 47 | such Fixed information, forward-looking and/or document respe
Slide 48: Disclaimer (continued)
Disclaimer this will calling Certain enable businesses Barclays described non-IFRS Exhibit (http://www.sec.gov/Archives/edgar/data/312069/000119312514388991/d810869dex991.htm), hedging reconciliation regulatory Adjusted 48 | document Fixed filethe 1-888-603-5847. non-IFRS 99.1 with redress; has mana
Slide 49: Disclaimer (continued) Non-IFRS Measures
Disclaimer 6-K; impairment. reconciliation regulatory page basic IFRS Adjusted interests. October Barclays Barclaycard, 49 | Fixed 17 earnings is presented measure of 30 Core The income net total litigation cost: basic return Income investigations the (continued) Form AAfrica operating comparable to
Slide 50: Disclaimer (continued)
Disclaimer ‘Constant exchange Liquidity June released January ahead Transitional CRD automatic November IV Estimated leverage The weighted 50 |text Fixed metric CRD 2013. IV ofand 2014). in transitional exposure the assets Coverage rates IV Currency write-down Income Net BCBS 21, December The is (co