Barclays Plc · LSE:BARC
Barclays — IPO Roadshow (August 2015)
54 slides from Barclays's IPO roadshow presentation, Aug 10, 2015
Slide 1: H1 2015 Fixed Income Investor Presentation
Free Writing Prospectus Filed Pursuant to Rule 433 Reg-Statement No. 333-195645 Barclays Fixed H1 29 July 2015 Income 2015 Interim PLC Investor Management Presentation Statement
Slide 2: H1 2015 Group highlights
Increased Positive Core Further Building 2Continued | Barclays business progress cost capital: Group good progress H1 tocontinued income 2015 progress on adjusted CET1 on Non-Core: Fixed resolving jaws: ratio toin pre-tax perform Income H1 increased Group £2.7bn legacy profits Investor well: adjuste
Slide 3: Strategy and value creation
1Accelerating Focus Take Continue 2Emphasise Increase Reallocate Resolve New A -Committed Evaluate Build More Streamline Decentralise 3Accelerate With Prudent Continue Bring Generate Value Strategy |High high Barclays Non-Core advantage external aon on appropriate and performance down customer Creat
Slide 4: Performance Overview
PERFORMANCE Performance Overview OVERVIEW CAPITAL & LEVERAGE HOLDCO TRANSITION & STRUCTURAL REFORM LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 5: Summary financials: six months
PERFORMANCE Summary Six Total Tax NCI Adjusted –Adjustments Basic Return H1 Group Income Impairment Costs Attributable Further Gain Statutory 51-Dividend CTA Excluding Core £600m 6.5p Costs Litigation Own Gain Provisions Loss |EPS Barclays financial months (1,109) and of operating earnings fell divi
Slide 6: Strengthening financial position
PERFORMANCE Strengthening Fully 9.1% 3.0% Dec-13 L&A 89% 309 LDR3 Estimated NSFR4 Dec-14 Progressive Highlights RWAs Leverage Liquidity Funding Overall -Continued In 1programme leverage comparable defined 6October Raised |Based H1 Barclays 349 89% to 9.5% 3.1% Loaded 15, (£bn) reduced Mar-14 Mar-15
Slide 7: Core performance
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Q2 APPENDIX –Three Profit Average Return Cost:income Basic Jun-14 CRD Leverage Financial PBT Income Impairment Total Attributable 71-RoE Africa Average Investment PCB Barclaycard Remains Remain Costs Litigation |Excluding Barclays Core was increased
Slide 8: Non-Core performance
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Non-Core: APPENDIX Three Impairment –Total Loss Financial Average Return Basic Jun-14 CRD Leverage Period Highlights £8.3bn, RWAs Income Credit Costs 1Attributable 8represent Businesses Securities Derivatives Costs Litigation |Return Barclays before
Slide 9: Capital & Leverage
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Capital APPENDIX& QUALITY RATING Leverage & TRANSITION & LEVERAGE FUNDING OVERVIEW & STRUCTURAL REFORM
Slide 10: CET1 ratio progression
HOLDCO PERFORMANCE CAPITAL LIQUIDITY ASSET CREDIT & OVERVIEW APPENDIX Continued Fully Target 9.1% >11% 11.1% 10.6% 10.3% +50bps FL While Confident RWA RWAs Guidance 2016 Jun-15 Mar-15 Dec-14 Dec-13 377 c.400 396 402 442 (5%) 1The revised 10Based STRUCTURAL |CRD Barclays reduction loaded reduction we
Slide 11: RWAs: Core and Non-Core bridge
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT RWAs: APPENDIX 396 Mar-15 RWAs Highlights In Net 1Model for 11Bridge Core, |modelled Barclays Non-Core 8 8reduced (£bn)1 and Closely Core 1QUALITY the items RATING 5& TRANSITION methodology 377 Investment & LEVERAGE counterparty H1 2run-down do Non-C
Slide 12: Non-Core RWAs
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Non-Core: APPENDIX RWAs 48% 31 Dec-13 Operational Guidance Leverage 57% 107 1Businesses 12Operational |26 Barclays 99 110 382 c.20 by 56 Dec-14 QUALITY 752 2772 RATING exposure type 39 & TRANSITION 16 Further Securities risk1 & LEVERAGE H1 23 65 15 r
Slide 13: Continued evolution of capital structure
PERFORMANCE Continued Evolution Total 3.4% (£12.8bn) 1.8% 2.0% T2 Legacy c. 1.1% buffers Sectoral 11.1% Capital 2.5% G-SII (£42.0bn) 4.5% CET1 Fully Transitional 17.4% We Pillar Barclays -Guidance 1The 13 AT1 T2 Expect Quantum CET1 Net 1.5% | aim continue Barclays PRA ofcapital (£6.7bn) (£4.2bn1) ³2
Slide 14: Significant CET1 management buffer
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Significant APPENDIX CET1 Minimum Pillar G-SII 12.0% 11.1% Management 10.0% Capital 8.0% 7.2% 6.0% 1.6% 2.0% 4.0% Jun-15 0.0% Estimated 7% To Maintained restriction AT1 T2 Expect The In 1(Combined and (which the restrictions, distribution payments as
Slide 15: Leverage ratio progression
PERFORMANCE 3.7% >4% +40bps 3.0% Target BCBS 1.23 1.26 1.36 (9%) impact Dec-13 The Leverage 1and consistent capital 15Jun-15 | FX Barclays 40bps £70bn 1.14 3.7% 270 based 1movements Dec-14 and Dec-14 ratio exposure with quarterly reduction 4.1% Mar-15 on H1strengthened progression1 grew already the
Slide 16: Leverage exposure highlights
PERFORMANCE L&A SFTs 3.7% 4.1% 105 1,353 3.4% 228 157 271 288 117 732 Jun-14 Improvement Highlights Leverage and 1Loans the 16Jun-15 |BCBS FX Barclays 1,233 115 170 262 690 Undrawn and 3.7% and Dec-14 movements 114 112 226 709 and ratio exposure1 ratio1 exposures exposure other 1,255 270 advances 1,
Slide 17: Holding company transition and structural reform
PERFORMANCE Holding company transition OVERVIEW and CAPITAL structural reform & LEVERAGE HOLDCO TRANSITION & STRUCTURAL REFORM LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 18: Barclays PLC balance sheet
PERFORMANCE Balance FY Assets Derivative Deposits Liabilities Subordinated Debt Shareholders’ Called Share Other Capital Retained Total As Notes Investment The Loans During Barclays 18 |Barclays 14 Barclays HoldCo’s investment securities assets shareholders’ liabilities assets liabilities premium eq
Slide 19: Refinancing and TLAC proxy
PERFORMANCE Refinancing (£bn) PRA Barclays Total RWAs Leverage Proxy Proactive While Expect Based –subordinated We The As Further 431November Please 19 Around Further For Jan Comprise Including |TLAC currently Barclays future transitional term 2016 illustrative Jun-15 risk-weighted leverage requirem
Slide 20: Managing HoldCo transition
PERFORMANCE Managing We In Senior Delivering Subscription Refinancing OpCo Total Barclays As If reduces 1increasing sheet, as 2014, and 20Barclays’ HoldCo aillustrated |we are any Barclays resolution capital including on Senior transition HoldCo currently subsequent PLC Bank Proxy slide the HoldCo t
Slide 21: Evolving structure and implications
PERFORMANCE Progressing Evolving UK Newly Barclays’ Substantial Existing International Will Key Continuous Maintaining Does We Implications Progressive Expect Diversification Capital Secured Barclays Location Potential 21 | expect ring-fenced Barclays strategic include not established material and f
Slide 22: Liquidity & Funding
PERFORMANCE Liquidity & Funding OVERVIEW CAPITAL & LEVERAGE HOLDCO TRANSITION & STRUCTURAL REFORM LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 23: Maintaining high quality liquidity pool
PERFORMANCE Maintaining High 127 22 62 43 Dec-13 Cash Estimated Metric LCR1 NSFR2 Dec-14 LRA Surplus Key Stable -Quality 1Even 23 80% 93% LCR 27 85 |37 Barclays 149 messages 124% quality & though 28 86 31 held of 124% liquidity Dec-14 estimated Dec-14 Jun-15 of 102% Deposits £30bn to £29bn 145 gover
Slide 24: Broadly self-funded retail funding
PERFORMANCE Broadly 91% 351 Retail Total Customer £522bn 14% 7% 62% Dec-13 Key Group Excess Overall 2015 remaining In securitisation 1We 24LDR H1 | expect maintain guided intend 4% Barclays 321 messages 89% 13% 62% Funding funding 15, LDR Loan for customer 8% Dec-14 funding £508bn self-funded 349 we
Slide 25: Continued wholesale funding diversification
PERFORMANCE Continue Wholesale 7% 13% Depostis £24% By As Key Overall -£6bn 1We channel secured 25 £68bn $4bn £1bn 1|at Given remaining currency1 month have expect 12% Barclays messages 15% 21% of 30 31 public offunding financing matures term different June December 11% £23bn from Covered to 4% 13%
Slide 26: Asset quality
PERFORMANCE LIQUIDITY & FUNDING OVERVIEW ASSET CAPITAL QUALITY & LEVERAGE CREDIT RATING HOLDCO APPENDIX TRANSITION Asset quality & STRUCTURAL REFORM
Slide 27: Impairment highlights
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Continued APPENDIX 44 456 (7%) -Highlights 17 PCB LLR 95 (4)% 309 Barclaycard 268 (2)% Africa 111 100 (3)% Q214 Impairment 27LLR STRUCTURAL 41 14 |79 94 Barclays 448 305 290 90 (bps) impairment Q115 45 18 99 remained Banking 112 103 QUALITY 488 283
Slide 28: Group loan loss rate and coverage
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Group APPENDIX Retail 308 138 85 16 Increasing 58% CRL 46bps 1.80% 2.00% CRLs Wholesale Dec-14 48 813 Personal A Definitions may LLR 285loan STRUCTURAL 84 18 33 |14 (1) Barclays 293 152 include 60% is coverage 75 30 12 %loan 40ps impairment becomes
Slide 29: Reduced Eurozone periphery exposure
PERFORMANCE Reduced Spain 59.0 Key The Exposure Total -Local We Exposures Sovereign 159.2 Jun-15 29 Portugal: Italy: Net | continue Barclays vast Messages 4.9 6.3 net on net Italy €4.8bn 7.9 32.5 majority balance exposure funding toFinancial by €1.7bn Portugal 22.7 Spain, to H1 9.3 geography asset f
Slide 30: Credit ratings
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Credit APPENDIX STRUCTURAL ratings QUALITY RATING & TRANSITION & LEVERAGE FUNDING OVERVIEW REFORM
Slide 31: Credit ratings
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT APPENDIX Ratings1 Standalone AT1 Senior T2 UT2 LT2 Tier Capacity” Bank Actions B 3YTD 19 downgraded due ratings by 28 credit upgraded at application 9Sovereign Floor analysis term not to BB sovereign government 17 and ALAC uplift Barclays Moody’s R
Slide 32: Contingent liquidity and rating downgrade impact
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT APPENDIX Contractual Securitisation Two-notch One-notch (£bn) 3C D 0L 2T 57K Total The 1Barclays 32 otal iquidity ontingent erivatives ey These STRUCTURAL | Barclays table Messages cumulative contractual QUALITY numbers manages now Bank RATING faci
Slide 33: Summary
Summary1 Strategy Focused Core On Solid Leverage Robust Diversified Progressing Proactive Regulation 1Established 33Figures |track Barclays businesses CET1 liquidity driving on to ratio as and international deliver funding high track plans ratio atH1 practical of Jun-15 delivered performing simpler,
Slide 34: Appendix
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Appendix APPENDIX STRUCTURAL QUALITY RATING & TRANSITION & LEVERAGE FUNDING OVERVIEW REFORM
Slide 35: Personal and Corporate Banking results
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT PCB: –APPENDIX Attributable Average Return Loan Net Loans Jun-14 Customer CRD Impact Three Jun-15 Illustrative Income Total Litigation Other Profit Cost:income Financial PCB Excluding Personal Corporate Impairment 1Costs 35 Wealth Personal Corporat
Slide 36: Barclaycard results
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Barclaycard: APPENDIX Three % (2%) (273) (268) 13% 1,222 –1,082 (19%) (527) (443) Profit (35%) (31) (23) Attributable 429 396 8% 307 285 Average £6.3bn £5.8bn Return 24.9% 24.7% Cost:income 19.7% Loan 43% 41% Net 283bps 309bps Jun-15 Jun-14 9.31% 8
Slide 37: Africa Banking results
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Africa APPENDIX Three % Total (3%) (103) (100) 2% 910 –895 (2%) (564) (553) Profit 13% (7) (8) -A 245 244 23% 96 78 Average £3.9bn £3.8bn Return 13.2% 11.3% Cost:income 9.7% 8.1% Loan 62% Net 112bps 111bps Loans Jun-15 Jun-14 5.87% 5.83% Customer £
Slide 38: Investment Bank results
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Investment APPENDIX Three Markets Income1 Impairment Total Litigation Profit Attributable Average Return Cost:income Jun-14 CRD Financial The Income Banking Credit Equities Macro Costs 1Cost 38Includes | Barclays returns to operating IV to decreased
Slide 39: Double digit Core returns
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Double APPENDIX Core 46.7 Q214 Non 9.3 13.5 (3.2%) (4.9%) Group 7.8% 6.4% RoE 39 | 9.1 Barclays Core Average 13.8% RoTE 11.3% 9.1% 7.5% Q215 55.3 Average equity digit QUALITY RATING 13.7 & TRANSITION 56.0 13.3% 11.0% returns & LEVERAGE H1 allocated s
Slide 40: Returns by business
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Double APPENDIX Q214 24.7% 19.7% 13.1% 13.8% 14.9% 17.5% 11.2% 12.2% 5.3% 8.1% 9.7% 11.0% RoE PCB 40 | Barclays RoTE Barclaycard 5.6% Q215 11.3% 24.9% 19.7% 13.2% digit QUALITY RATING & TRANSITION RoE returns & LEVERAGE H1 11.5% 13.3% FUNDING RoTE 20
Slide 41: Group adjusted operating expenses progression
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Group APPENDIX Year-on-year 8.4 0.1 H114 7.9 Quarterly 66% 4.5 6% 5.2 4.4 Q213 4.1 4.2 4.3 41 | 4.4 0.4 0.1 Barclays 64% Non-Core Q313 adjusted 0.1 4.4 QUALITY RATING progression Cost: & TRANSITION Q413 & LEVERAGE H1 progress FUNDING operating income
Slide 42: Group cost targets
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT APPENDIX Group Non-Core 16.9 c.16.3 18.7 Costs Core FY13 <14.5 15.1 116.4 42Excludes | Barclays cost to FY14 and cost QUALITY achieve RATING target1 & TRANSITION Core provisions guidance1 FY15 // & LEVERAGE H1FY16 FUNDING cost £1.2bn 2015 (£bn) Targe
Slide 43: Core operating expenses highlights
PERFORMANCE CAPITAL HOLDCO LIQUIDITY ASSET CREDIT Continued APPENDIX 4.0 2% 0.2 1.3 2.4 Staff Core Highlights Operating PCB 1.31 (3%) 0.44 (19%) Barclaycard Africa 0.55 (2%) Investment 1.59 14% Q214 11.37 43Totals | 2.4 3.9 0.1 1.3 Barclays 1.28 0.49 0.57 1.49 costs operating Q115 Banking 3.9 0.2 1.
Slide 44: Wholesale funding composition
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Wholesale 963APPENDIX >1 >5 As <1 >2 months Barclays Deposits 11.4 Certificates 1.1 Asset 3.2 5.7 (public Senior (private 1.8 Covered -Subordinated 2.9 Other3 20.4 Total 121.9 settlement year 44 1.0 -1.1 The months STRUCTURAL -|years year month at
Slide 45: Debt maturity profile and refinancing
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT OpCo APPENDIX Expect Additional Annual BB 6.3 9.5 5.2 3.9 2.6 1.4 H2 0.5 0.2 45 STRUCTURAL |2015 2.6 2 4.3 3.7 1.5 PLC Barclays senior 0.3 1.6 to HoldCo QUALITY structured term 2016 RATING refinance & TRANSITION 0.4 flexibility & unsecured LEVERAGE
Slide 46: Overview of bail-in and UK Banking Act
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT APPENDIX Overview European Statutory Requirement UK allocating Certain Powers Principle Considerations Under The Liabilities liabilities’ capital In investors Note, rather 46 STRUCTURAL line accordance | Banking Barclays scope the itDepositor with
Slide 47: Strategy update recap
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Repositioning APPENDIX Rightsizing Establishing Allocating Delivering Generating As 47 STRUCTURAL |presented Barclays QUALITY RATING & TRANSITION capital ahigher and astructurally & LEVERAGE at H1 and dedicated FUNDING the focusing 2015 to and simp
Slide 48: Reducing leverage and RWAs
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT Reducing APPENDIX Leverage 2013 2016 £1.4tn RWAs c.£1.1tn1 Retail Bank Investment 214 49% £436bn Non-Core c.55% 26% Core +15% 46% Maintained 28% 1The Preliminary 482016 STRUCTURAL | Barclays Core c.115 excl. c.120 Core pre-resegmentation post-reseg
Slide 49: Investment Bank repositioning
PERFORMANCE CAPITAL HOLDCO & LIQUIDITY ASSET CREDIT APPENDIX Core FY Cash Global Right-sized Foreign Fixed Origination Advisory DCM ECM Build Structurally Improve Non-Core RWAs: Exit Markets Most Certain Capital Principal Front-to-back Banking Credit 1Investments Preliminary 49CRD STRUCTURAL | 20131
Slide 50: Contact
Contact Lisa Sofia lisa.bartrip@barclays.com Dan sofia.lonnqvist@barclays.com +44 50 barclays.com/barclays-investor-relations.html Website: daniel.colvin@barclays.com | Barclays (0)20 Colvin Bartrip Lonnqvist – Debt 7773 7116 H1Investor 5716 6533 0708 2015 Fixed Relations IncomeTeam Investor Present
Slide 51: Important Disclaimer
Important Disclaimer The instruments, Forward-looking This amended, differ statements Examples targets future circumstances. and with markets; Programme; dividend Group’s available Subject revise 51 | regulatory other application Barclays information, presentation regard materially operations, any i
Slide 52: Disclaimer (continued)
Disclaimer this will calling Certain enable businesses Barclays described non-IFRS Exhibit http://www.sec.gov/Archives/edgar/data/312069/000119312515268091/d55989dex991.htm) provisions on Adjusted Form 52 |valuation document Barclays file 6-K; the 1-888-603-5847. non-IFRS 99.1 with has management ma
Slide 53: Disclaimer: non-IFRS measures (continued)
Disclaimer Exchange reconciliation relating insurance profit equity return instruments, Adjusted of intangible including the Barclays Barclaycard, 53 other |deduction Barclays after on instruments, to equity Core total litigation cost: basic return average an claims. and assets Foreign tax (continue
Slide 54: Disclaimer (continued)
Disclaimer Liquidity June Net December October further Transitional CRD automatic November The of guidance metric 54 only. global | Stable Barclays estimate 2013. IVis revisions 2014). transitional subject systemically is Coverage write-down 2010 Funding 21, The (continued) necessary. CET1 of H1 201