Barclays Plc · LSE:BARC
Barclays — Bank of America Merrill Lynch Banking, Insurance & Diversified Financials Conference 2015
14 slides from Barclays's conference presentation, Sep 29, 2015
Slide 1: Barclays PLC
Barclays PLC Bank of America Merrill Lynch Banking, Insurance & Diversified Financials Conference 29 September 2015
Slide 2: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director
Slide 3: Five measures that show our strategy is on track
Five measures that show our strategy is on track 1 Generate double digit Core RoE 2 Continue to reduce Non-Core 3 Build capital towards our end-state CET1 ratio 4 Reduce costs and improve efficiency 5 Resolve litigation and conduct issues 3 | Bank of America Merrill Lynch Banking, Insurance & Divers
Slide 4: Continued good progress in Q2
Continued good progress in Q2 Increased Group adjusted pre-tax profits by 12%, with Core up 6% Core business continued to perform well: PBT of £2.1bn and RoE of 11.0% Further progress on Non-Core: £1.4bn of capital released and RWAs reduced £8bn Building capital: CET1 ratio increased to 11.1% and le
Slide 5: Progressive strengthening of key capital metrics
Progressive strengthening of key capital metrics Fully Loaded CET1 ratio1 200bps • CET1 ratio increased 200bps since Dec-13 to 11.1% 12.1% − Achieved our 2016 target 18 months early Significant conduct and litigation3 c100bps − CET1 capital build of £0.2bn in Q215 to £42bn, and RWA >12% reduction of
Slide 6: Q2 Core performance: Positive jaws and PBT up 6%
Q2 Core performance: Positive jaws and PBT up 6% Three months ended (£m) Jun-14 Jun-15 % change Income (£bn) Jun-14 Jun-15 Income 6,397 6,520 2% +2% 0% Impairment (456) (488) (7%) +13% Total operating expenses (3,975) (3,888) 2% +2% 2.2 2.2 2.2 2.2 – Costs to achieve (237) (184) 22% 1.1 1.2 0.9 0.9
Slide 7: Barclays Non-Core: Reductions across every measure
Barclays Non-Core: Reductions across every measure Quarterly income (£m) Quarterly costs3 (£m) (253) 207 234 370 441 Europe 285 321 329 retail 219 businesses 22 32 10 Q214 Q314 Q414 Q115 Q215 Q214 Q314 Q414 Q115 Q215 RWAs by type (£bn) Leverage exposure by type (£bn) 48% 57% 110 382 752 Original 277
Slide 8: Group adjusted operating expenses: delivery to date
Group adjusted operating expenses: delivery to date Year-on-year progress – excluding CTA (£bn) 8.4 0.4 0.1 0.1 0.1 7.9 H114 Non-Core Investment PCB Head Africa Barclaycard H115 Bank Office Banking Quarterly progression – excluding UK Bank Levy (£bn) 66% 64% Cost: income ratio 5.2 6% 4.5 4.4 4.4 4.4
Slide 9: Group and Core cost targets
Group and Core cost targets Group cost guidance1 (£bn) Core cost target1 (£bn) 18.7 c.16.3 16.9 Non-Core 16.4 15.1 Core <14.5 FY13 FY14 FY15 Target FY13 FY14 FY16 Target Costs to achieve £1.2bn £1.2bn c.£0.7bn2 (CTA) Targeting cost to income ratio in the mid-50s over time 1 Excludes provisions for U
Slide 10: Digital is Barclays biggest branch
Digital is Barclays biggest branch PCB Retail June 2015 2014 2013 Digitally active 5.3m 6.3m 6.5m Barclays Mobile Banking (BMB) 2.3m 3.6m 4.2m Customers Payments and transfers £13.3bn £16.1bn £18.2bn (monthly) Unsecured lending originated £0.5bn £1.05bn £0.77bn1 digitally (yearly) Online unsecured l
Slide 11: Digital innovation and embracing disruptive technologies
Digital innovation and embracing disruptive technologies Consumer mobile payments • Barclays set to become the first financial services provider in the UK to introduce contactless payments from any NFC-enabled Android mobile phone − To be launched in Nov 2015 for Barclaycard holders and in 2016 with
Slide 12: Five measures that show our strategy is on track
Five measures that show our strategy is on track 1 Generate double digit Core RoE 2 Continue to reduce Non-Core 3 Build capital towards our end-state CET1 ratio 4 Reduce costs and improve efficiency 5 Resolve litigation and conduct issues 12 | Bank of America Merrill Lynch Banking, Insurance & Diver
Slide 13: Barclays PLC
Barclays PLC Bank of America Merrill Lynch Banking, Insurance & Diversified Financials Conference 29 September 2015
Slide 14: Disclaimer
APPENDIX Disclaimer Important Notice The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments, or any advice or recommendatio