Slide 1: Barclays PLC Corporate Banking Investor Presentation
Barclays PLC Corporate Banking Investor Presentation 1 May 2013
Slide 2: What is Corporate Banking at Barclays?
What is Corporate Banking at Barclays? 40,000 clients globally, >£5m turnover 13,000 staff in 27 countries £3,046m income, 10% of the Group (2012) £460m adjusted PBT (2012) 2 | Corporate Banking Investor Presentation | 1 May 2013
Slide 3: Our business in 2010 faced numerous challenges
Our business in 2010 faced numerous challenges Geographies Clients UK Non-UK • SME focused in non-UK markets • Strong franchise • Sub-scale in all • Concentrated in high risk sectors but geographies (e.g. property and construction in Spain) underinvested • Loss-making • Low client satisfaction Produ
Slide 4: The strategy implemented in 2010 is working
The strategy implemented in 2010 is working Adjusted PBT (£m)1 460 191 183 -255 2010 2011 2012 Q1 2013 RWAs (£bn) 77 75 71 73 Adj. RoE1 (4.6%) 0.4% 2.9% 6.1% 4 | Corporate Banking Investor Presentation | 1 May 2013 1. FY 2012 adjusted to exclude (£850m) provision for hedging product redress. FY 2011
Slide 5: Business is being driven by six strategic principles
Business is being driven by six strategic principles… 1 Strengthen our core UK franchise 2 Rationalise our geographic footprint 3 Develop leading product and service capabilities 4 Exploit synergies across the Barclays Group 5 Actively manage our balance sheet 6 Establish a strong culture 5 | Corpor
Slide 6: …and validated by Transform
…and validated by Transform High 2 Reposition Invest and grow 1 UK – Education, Social Global Corporates Housing and Local Global Financial Institutions RWA: RWA: Authority loan portfolio UK Domestic £7bn £59bn Absa – Domestic customers Market attractiveness 4 Exit Transition 3 Europe – Legacy portf
Slide 7: Strengthening our UK Business...
1 Strengthening our core UK franchise Strengthening our UK Business... Barclays’ UK share of lending Overall UK client satisfaction (%) 2 UK impairment (£m) and deposit markets (%) 1 Lending Deposits Barclays Competitors 459 20 75 -38% 355 70 19 285 65 18 60 17 55 30 16 50 Feb-10 Feb-11 Feb-12 Feb-1
Slide 8: ...based on a platform that delivers sustainable growth
1 Strengthening our core UK franchise ...based on a platform that delivers sustainable growth Leading UK player Effective platforms • 24% of UK corporates 1 rank Barclays as • 8 million sterling transactions processed their main bank every day • £300bn of sterling payments processed daily Broad clie
Slide 9: ...and further improved profitability
1 Strengthening our core UK franchise ...and further improved profitability Adjusted UK RoE (%)1 Adjusted C:I ratio (%)1 25% 52 55 50 48 50 20% 44 45 15% 13.2% 40 10.0% 10.2% 10% 8.6% 35 5% 30 0% 25 2010 2011 2012 Q1 2013 Adj. PBT1 £880m £719m £831m £269m 9 | Corporate Banking Investor Presentation
Slide 10: Improving returns by exiting unprofitable businesses
2 Rationalise our geographic footprint Improving returns by exiting unprofitable businesses Business actions Exits impact 2010-2012 • Indonesia CLOSED Income removed (£240m) Mar 2010 • Legacy Europe RUN-DOWN INITIATED Impairment reduced £670m Jan 2011 Cost base decreased £350m • Russia SOLD Feb 2011
Slide 11: Shaping a leaner, less risky Iberian business going forward
2 Rationalise our geographic footprint Shaping a leaner, less risky Iberian business going forward Trend Trend Iberia loans and advances (£bn) 2013-2015 Iberia RWAs (£bn) 2013-2015 -32% -49% 10.6 9.4 8.4 7.2 6.7 4.3 2010 2011 2012 2010 2011 2012 Trend Trend Iberia clients 2013-2015 Iberia impairment
Slide 12: Servicing cross-border needs of CIB clients
2 Rationalise our geographic footprint Servicing cross-border needs of CIB clients International client base Major clearing bank Relationships with 58% of Fortune A leading GBP clearing bank and Global 500 companies strong EUR capabilities UK/Europe New York Broad international network~ Cross-border
Slide 13: Servicing our UK, Africa and IB cross-border clients
3 Develop leading product and service capabilities Servicing our UK, Africa and IB cross-border clients Roll-out of capabilities globally Launched • A consistent approach globally In Progress makes product roll-out faster Europe Rest of Africa and enhances platform UK South Africa efficiency Electro
Slide 14: Helping clients succeed in Africa
3 Develop leading product and service capabilities Helping clients succeed in Africa Barclays presence • Capitalising on a leading presence in twelve African countries, collectively representing nearly half of African GDP • Strengthening top 3 domestic position in South Africa • Building pan-African
Slide 15: Delivering Barclays to Investment Bank clients
4 Exploit synergies across the Barclays Group Delivering Barclays to Investment Bank clients • Providing Treasury solutions to our largest Investment Banking clients and their subsidiaries • Helping clients access Barclaycard, Investment Bank and Wealth product and expertise Target 1,000 Investment
Slide 16: Reducing RWAs through exits and management actions
5 Actively manage our balance sheet Reducing RWAs through exits and management actions RWA bridge (£bn) 77 (7) 71 c.5-7 (9) 10 2010 Exits Management Regulatory 2012 2013 Actions Change Expected Regulatory Change 16 | Corporate Banking Investor Presentation | 1 May 2013
Slide 17: Proactively managing risk to reduce impairment
5 Actively manage our balance sheet Proactively managing risk to reduce impairment Impairment (£m) Rest of World Europe UK UK Loan Loss Rate (bps) 150 Annual 1,702 Avg. last 10 yrs -48% 100 1,150 50 885 2007 0 2008 2009 2010 2011 2012 Q1 2013 130 2010 2011 2012 Q1 2013 17 | Corporate Banking Investo
Slide 18: Improving client satisfaction
6 Establish a strong culture Improving client satisfaction Client complaints (rebased to 2010) Relationship Director client satisfaction (ranking)1 Barclays Competitors 100 -55% #1 #1 #1 60 #2 #2 #2 45 #3 #3 #3 #4 #4 #4 2010 2011 2012 Q1 Q1 Q1 2011 2012 2013 18 | Corporate Banking Investor Presentat
Slide 19: Dealing effectively with hedging products redress
Hedging Product Redress Dealing effectively with hedging products redress We have a dedicated program reviewing Our rigorous approach is being noticed: Interest Rate Hedging Products sold to clients Process is complex: Barclays is the only bank to have produced a guide to the review and – 600+ F
Slide 20: Transform initiatives will contribute to future cost savings
COSTS: Strategic Battleground Transform initiatives will contribute to future cost savings • Decrease in costs (2010-2012) mainly driven by: Adjusted operating expenses (£m) 1 • Exiting legacy businesses • Focusing on cost efficiency in UK through reducing -12% operational headcount and efficient lo
Slide 21: Corporate Banking restated financial targets
Transform Targets Corporate Banking restated financial targets FY 12 FY 15 Transform £3.0bn Income £3.2-3.7bn £71bn RWA £73-83bn 2.9% RoE >8% 21 | Corporate Banking Investor Presentation | 1 May 2013
Slide 22: Reaching >8% RoE by 2015
Transform Targets Reaching >8% RoE by 2015 RoE bridge >8% 2.9% 2012 Transform Global Corporates UK 2015 Legacy businesses & Financial Domestic wind-down & Institutions cost efficiencies Performance underpinned by strong UK Corporate franchise already delivering 10.2% RoE (2012) 22 | Corporate Bankin
Slide 23: 23 | Corporate Banking Investor Presentation | 1 May 2013
& 23 | Corporate Banking Investor Presentation | 1 May 2013
Slide 24: Legal disclaimers
Legal disclaimers Important Notice The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation wit