Slide 1: Barclays PLC Q3 2012 Interim Management Statement
Barclays PLC Q3 2012 Interim Management Statement 31 October 2012
Slide 2: Antony Jenkins, Group Chief Executive
Antony Jenkins Group Chief Executive
Slide 3: Chris Lucas, Group Finance Director
Chris Lucas Group Finance Director
Slide 4: Adjusted financial highlights
Adjusted financial highlights 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 22,347 22,300 - Impairment charges (2,657) (2,851) (7) Net operating income 19,690 19,449 1 Operating expenses (13,832) (14,441) (4) Adjusted profit before tax* 5,954 5,062 18 Statutory profit before ta
Slide 5: Adjusted items to PBT
Adjusted items to PBT 2012 2011 Change Nine months ended – September (£m) (£m) (%) Profit before tax 712 5,066 (86) Own credit charge/(gain) 4,019 (2,971) Provision for PPI redress 1,000 1,000 Provision for interest rate hedging 450 - products redress (Gain)/loss on sale of BlackRock (227) 1,858 inv
Slide 6: Adjusted performance measures
Adjusted performance measures 2012 2011 Nine months ended – September (£m) (£m) Return on average shareholders’ equity 8.8% 8.4% Return on average tangible shareholders’ equity 10.3% 10.1% Return on average risk weighted assets 1.4% 1.3% Cost: income ratio 62% 65% 6 | Barclays Q3 2012 Interim Manage
Slide 7: UK Retail and Business Banking
UK Retail and Business Banking 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 3,335 3,527 (5) Impairment charges (198) (380) (48) Net operating income 3,137 3,147 - Operating expenses (1,991) (1,950) 2 (excludes provision for PPI redress) Adjusted profit before tax 1,146 1,198 (
Slide 8: Europe Retail and Business Banking
Europe Retail and Business Banking 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 705 979 (28) Impairment charges (233) (178) (31) Net operating income 472 801 (41) Operating expenses (632) (920) (31) Loss before tax* (151) (109) 39 Return on average equity (7.6%) (3.9%) Cost: i
Slide 9: Africa Retail and Business Banking
Africa Retail and Business Banking 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 2,390 2,710 (12) Impairment charges (501) (378) 33 Net operating income 1,889 2,332 (19) Operating expenses (1,564) (1,774) (12) Profit before tax* 330 561 (41) Adjusted return on average equity 4.
Slide 10: Barclaycard
Barclaycard 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 3,072 3,112 (1) Impairment charges (714) (988) (28) Net operating income 2,358 2,124 11 Operating expenses (excludes provision (1,232) (1,201) 3 for PPI redress and goodwill impairment) Adjusted profit before tax* 1,150
Slide 11: Investment Bank
Investment Bank 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 9,129 8,517 7 Impairment charges (346) (3) Net operating income 8,783 8,514 3 Operating expenses (5,613) (5,831) (4) Profit before tax* 3,205 2,698 19 Return on average equity 14.2% 12.0% Cost: income ratio 61% 68% C
Slide 12: Investment Bank quarterly income
Investment Bank quarterly income Q2 2011 £m 3,464 Q3 2011 Q4 2011 3,032 2,897 Q1 2012 2,633 Q2 2012 2,396 Q3 2012 2,254 1,968 1,818 Total income 1,715 1,581 1,438 • Q3 2012 vs Q3 2011 up 17% • Q3 2012 vs Q2 2012 down 13% 971 563 550 534 520 506 509 501 487 423 389 338 305 Total income FICC Equities
Slide 13: Corporate Banking
Corporate Banking 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 2,205 2,398 (8) Impairment charges (635) (895) (29) Net operating income 1,570 1,503 4 Operating expenses (excludes provision (1,130) (1,337) (15) for interest rate hedging products redress) Adjusted profit before
Slide 14: Wealth and Investment Management
Wealth and Investment Management 2012 2011 Change Nine months ended – September (£m) (£m) (%) Income 1,334 1,295 3 Impairment charges (25) (31) (19) Net operating income 1,309 1,264 4 Operating expenses (1,109) (1,109) - Profit before tax* 200 153 31 Return on average equity 11.2% 10.7% Cost: income
Slide 15: Solid capital, liquidity and funding
Solid capital, liquidity and funding As at 30 Sep 2012 30 Jun 2012 Core Tier 1 ratio 11.2% 10.9% Risk weighted assets £379bn £390bn Adjusted gross leverage 20x 20x Adjusted gross leverage excluding the 17x 17x liquidity pool Group liquidity pool £160bn £170bn Nine months ended 30 September 2012 Term
Slide 16: Pro forma Core Tier 1 ratios
Pro forma Core Tier 1 ratios % Reported CT1 ratio Pro forma reported CT1 ratio* Fully loaded Basel 3 CT1 ratio* 11.2 10.9 10.4 9.5 9.1 8.2 30 Sep 12 (Basel 2.5) 31 Dec 12 (Basel 2.5) 01 Jan 13 (Basel 3) 31 Dec 13 (Basel 3) * For details and basis of calculation, see slides 28 and 29 16 | Barclays Q3
Slide 17: Adjusted cost: income ratio improved to 62%
Adjusted cost: income ratio improved to 62% £m Performance costs Non-performance costs 22,300 22,347 14,441 (4%) 13,832 2,184 (9%) 1,995 (3%) 12,257 11,837 Q3 YTD 2011 Q3 YTD 2012 Q3 YTD 2011 Q3 YTD 2012 Costs Total income 17 | Barclays Q3 2012 Interim Management Statement | 31 October 2012
Slide 18: NIM lower due to smaller contribution from hedges
NIM lower due to smaller contribution from hedges £m Q3 YTD Q3 YTD Customer Margin 2011 2012 Non Customer Margin Hedge Income 1,805 989 Customer Income 7,380 7,345 Average Assets 317,408 317,987 250 209 Average Liabilities 269,387 279,348 200 186 41 basis points 22 150 100 168 164 50 0 Q3 YTD 2011 Q
Slide 19: Reduced exposure to the Eurozone periphery
Reduced exposure to the Eurozone periphery • Over the quarter net funding mismatches in Spain reduced from £2.5bn to £0.1bn and from £3.7bn to £3.3bn in Portugal • Peripheral sovereign exposures* down 15% to £4.8bn • Corporate assets in Spain, Italy and Portugal down 19% to £8.2bn • Retail lending i
Slide 20: Summary
Summary Adjusted profit before tax up 18% Income stable with operating expenses down 4% on an adjusted basis Capital, liquidity and funding remain strong Reduced exposures to Eurozone periphery countries 20 | Barclays Q3 2012 Interim Management Statement | 31 October 2012
Slide 21: Appendix
Appendix Q3 2012 Interim Management Statement 21 | Barclays Q3 2012 Interim Management Statement | 31 October 2012
Slide 22: Adjusted return on equity (RoE) increased to 8.8%
Adjusted return on equity (RoE) increased to 8.8% Q3 YTD 2011 RoE Q3 YTD 2012 RoE 8.4% Group 8.8% 16.7% UK RBB 16.9% (3.9%) Europe RBB (7.6%) 9.6% Africa RBB 4.9% 18.4% Barclaycard 22.7% 12.0% Investment Bank 14.2% 2.1% Corporate Banking 5.6% 10.7% Wealth and Investment Mgmt 11.2% 22 | Barclays Q3 2
Slide 23: Analysis of net interest margin
Analysis of net interest margin RBB, Total RBB, Corporate Europe Corporate Wealth Corporate As at 30 September 2012 UK RBB Africa RBB Barclaycard and Wealth RBB Banking and IM and interest Wealth income Customer asset margin (%) 1.09 0.82 3.25 9.34 1.18 0.64 2.11 5,025 Customer liability margin (%)
Slide 24: Balance Sheet summary
Balance Sheet summary 30 Sep 12 30 Jun 12 (£bn) (£bn) Total assets 1,599 1,631 Including Derivative financial instruments 495 518 Loans and advances to customers 453 455 Total Liabilities 1,535 1,568 Including Derivative financial instruments 488 507 Customer accounts 407 409 Shareholders’ equity 64
Slide 25: Calculation of adjusted gross leverage
Calculation of adjusted gross leverage 30 Sep 12 30 Jun 12 As at (£bn) (£bn) Total assets 1,599 1,631 Counterparty netting (411) (426) Collateral on derivatives (48) (51) Net settlement balances and cash collateral (100) (97) Goodwill and intangible assets (8) (8) Customer assets held under investme
Slide 26: RWAs by business
RWAs by business 30 Sep 12 30 Jun 12 As at (£m) (£m) UK RBB 37,305 36,038 Europe RBB 16,055 16,563 Africa RBB 26,846 27,909 Barclaycard 33,573 33,149 Investment Bank 180,415 190,553 Corporate Banking 64,349 69,328 Wealth and Investment Management 14,095 13,998 Head Office and Other Operations 6,004
Slide 27: Capital resources
Capital resources 30 Sep 12 30 Jun 12 As at (£m) (£m) Shareholders’ equity (ex. NCIs) 54,295 54,205 Net NCIs 2,409 2,525 Regulatory adjustments and deductions: Goodwill and intangible assets (7,564) (7,574) Own credit cumulative gain (net of tax) 323 (492) Defined benefit pension adjustment* (2,297)
Slide 28: Pro forma CRD IV capital and RWAs
Pro forma CRD IV capital and RWAs Reported Pro forma Pro forma Pro forma Sep-12 Dec-12 Jan-13 Dec-13 CT1 Capital 42.5 42.9 42.9 47.2 CRDIV impact to CT1 Capital 1.3 1.3 CT1 Capital (under CRDIV) 44.2 48.5 Sep-12 RWAs 379 379 379 379 Operational Risk and Slotting (Q4-12) 15 15 15 RWAs (post Operation
Slide 29: CRD IV impact on capital and RWAs
CRD IV impact on capital and RWAs Notes on Proforma CRD IV Capital Ratios 1. Proforma uses consensus estimates for retained earnings from 23 sell-side analysts, including consensus dividend payout. Barclays neither endorses nor verifies the estimates used 2. Proforma assumes exercise of outstanding
Slide 30: Investment Bank credit market exposures
Investment Bank credit market exposures Nine months ended 30 Sep 12 Imp. Total FV (losses) 30 Sep 12 31 Dec 11 (charge) (losses) / As at / gains (£m) (£m) / release gains (£m) (£m) (£m) ABS CDO Super Senior 1,536 1,842 (24) (129) (153) US sub-prime and Alt-A 803 1,381 68 (12) 56 Commercial real esta
Slide 31: Reduced exposure to the Eurozone periphery
Reduced exposure to the Eurozone periphery Spain Italy Portugal Ireland As at 30 September 2012 (£m) (£m) (£m) (£m) Sovereign 2,165 1,946 627 10 Corporate 4,175 1,790 2,190 1,023 Residential mortgages 13,261 15,238 3,436 78 Financial institutions 2,866 298 67 3,790 Other retail lending 2,815 1,991 1
Slide 32: Spanish exposures
Spanish exposures Retail Gross mortgage exposure by location of Average indexed LTV of 64% outstanding balances Average retail customer age 48; less than 1% of mortgage balances with customers aged under 25 Barcelona c.13% 0.7% of home loans greater than 90 days in arrears* Corporate £4.6bn
Slide 33: Portuguese exposures
Portuguese exposures Retail Gross mortgage exposure by location of Average indexed LTV of 73% outstanding balances Average retail customer age 40; less than 1% of mortgage balances with customers aged under 25 0.6% of home loans greater than 90 days in arrears* Porto c.15% Corporate £1.7bn g
Slide 34: Italian exposures
Italian exposures Retail Gross mortgage exposure by location of Average indexed LTV of 47% outstanding balances Average retail customer age 46; less than 3% of Milan mortgage balances with customers aged under 25 c.10% 1.0% of home loans greater than 90 days in arrears* Corporate Focused on
Slide 35: Legal disclaimers
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