Slide 1: ies. armas
- — ies. armas #) BARCLAYS
Slide 2: Agenda for the day
Agenda for 08:30-08:55 25 minutes FY23 Results Presentation C.S. Venkatakrishnan and Anna Cross 08:55-09:15 20 minutes FY23 Results Q&A C.S. Venkatakrishnan and Anna Cross the day 09:15-09:55 40 minutes Group Presentation C.S. Venkatakrishnan and Anna Cross 09:55-10:30 35 minutes Group Q&A C.S. Venk
Slide 3: FY 2023 Results Announcement
FY 2023 Results Announcement 20th February 2024
Slide 4: Delivering against guidance
Delivering against guidance Barclays FY 2023 Results February 2024 4 Achieved guidance Strong balance sheet Enabled increased across metrics and earnings shareholder distributions 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 CIR (guida
Slide 5: FY23: Group RoTE of 10.6% with profit before tax of £7.5bn
FY23: Group RoTE of 10.6%1 with profit before tax of £7.5bn1 Barclays FY 2023 Results February 2024 5 Performance Profit before tax2 (£bn) £25.4bn £16.0bn1 FY22 RoTE: FY23 FY23 RoTE: Income Costs 11.6%2 Statutory 10.6%1 FY22: £24.7bn2 FY22: £15.8bn2 Statutory RoTE: RoTE: 9.0% 10.4% 63%1 £9.4bn1 0.7
Slide 6: FY23 Group income up 3% YoY
FY23 Group income up 3%1 YoY Barclays FY 2023 Results February 2024 6 Group income excluding the impact of the Over-issuance of Securities1 (£bn) +£714m | +3%1 Group 25.4 24.7 21.6 21.8 21.9 +£328m | +5% Barclays UK2 7.3 7.6 • Rates and structural hedge benefits partially offset by product dynamics
Slide 7: FY23 Group NII of £12.7bn; up 20% YoY
FY23 Group NII of £12.7bn; up 20% YoY Barclays FY 2023 Results February 2024 7 NII is half of Group income, of which BUK is half of Group NII Group NIM1 3.42% 2.94% 2.93% 3.54% 3.98% Group net interest income (bn)2 12.7 +£2,137m | +20% Group 10.6 • NIM: 3.98%1 (+44bps YoY) 9.4 8.1 8.1 6.4 +£538m | +
Slide 8: Meaningful structural hedge income uplift YoY
Meaningful structural hedge income uplift YoY Barclays FY 2023 Results February 2024 8 Gross hedge income expected to continue to grow 4.1% Spot 4.0%2 GBP 5yr 0.7% 1.0% 0.0% 3.4% swap rate1 Average 1.1% 1.5% 0.9% 0.7% 0.9% hedge yield3 £3.8bn already 3.6 locked-in for FY244 Gross hedge 2.2 income (£
Slide 9: Costs remained well managed despite inflationary headwinds
Costs remained well managed despite inflationary headwinds Barclays FY 2023 Results February 2024 9 Group operating expenses excluding the impact of the Over-issuance of Securities1 and Q423 structural cost actions2 (£bn) Group CIR 57% 63% 63% 71%2 63%1 63%2 Operating costs and Bank Levy excluding L
Slide 10: Q423 structural cost actions to improve future returns
Q423 structural cost actions to improve future returns Barclays FY 2023 Results February 2024 10 Q423 Structural Cost Actions of £927m Expect savings of c.£500m in 2024, with a payback of <2 years £340m People People £340m • Rightsizing headcount HO £453m o £79m BUK, £71m CC&P, £188m CIB Property £2
Slide 11: LLR of 46bps; maintaining through the cycle guidance of 50-60bps
LLR of 46bps; maintaining through the cycle guidance of 50-60bps Barclays FY 2023 Results February 2024 11 Balance sheet provisions for Credit impairment charges (£m) Loan loss rate (bps) ECL1 (£bn) 1,881 6.3 6.2 6.3 Off- 304 BUK balance 0.5 0.6 0.5 sheet 138 1,220 286 On- balance 5.7 5.7 1,525 CC&P
Slide 12: Higher delinquencies in US Cards in line with market trend
Higher delinquencies in US Cards in line with market trend Barclays FY 2023 Results February 2024 12 Actual loss experience limited with reserve build for anticipated increase 30 days delinquencies 2.7% 2.9% 2.2% 2.3% 2.4% 2.0% 1.6% 1.4% Loan loss rate1 (bps) Forecast LLR to 259 179 257 337 515 411
Slide 13: Q423 income of £5.6bn with profit before tax of £1.0bn
Q423 income of £5.6bn with profit before tax of £1.0bn1 Barclays FY 2023 Results February 2024 13 Performance Profit before tax (£bn) Q422 Q423 Q423 £5.6bn £4.0bn1 RoTE: 8.9% History of Q4 income Statutory RoTE: 5.1%1 Income Costs 5.8 5.6 5.3 4.9 5.2 RoTE: (0.9)% Q422: £5.8bn Q422: £4.0bn Q419 Q420
Slide 14: Barclays UK delivered 19.7% RoTE in Q423
Barclays UK delivered 19.7%1 RoTE in Q423 Barclays FY 2023 Results February 2024 14 Performance Income (£bn) RoTE: consistent profitability -9% £1.8bn £1.0bn1 -6% excluding UK 22.1% 18.7% 20.0% 20.9% 21.0% 19.7%1 Income Costs Wealth transfer 18.4% 15.6% Q422: £2.0bn Q422: £1.1bn 2.0 1.9 1.8 57%1 £37
Slide 15: Q423 Barclays UK deposit trends improved, driving FY23 NIM of 3.13%
Q423 Barclays UK deposit trends improved, driving FY23 NIM of 3.13% Barclays FY 2023 Results February 2024 15 BUK deposit balances and mix (£bn) Net interest margin • Deposit outflows materially slowed in Q423 Barclays UK NIM 3.18% 3.22% 3.04% 3.07% -£4.5bn -£6.6bn -£2.1bn Q123 Q223 Q323 Q423 254 25
Slide 16: Acquisition of Tesco Bank Retail Banking
Acquisition of Tesco Bank Retail Banking Barclays FY 2023 Results February 2024 16 £bn 8.3 • Expected completion H224 with initial Consumer annualised NII of c.£400m 4.1 Loans • Initial integration costs but broadly neutral 6.7 Credit to Group cost: income ratio Cards 4.2 • Risk profile consistent w
Slide 17: CC&P Q423 RoTE decline driven by impairment build
CC&P Q423 RoTE decline driven by impairment build Barclays FY 2023 Results February 2024 17 Performance Income (£bn) US Cards end net receivables ($bn): seasonal growth in Q423 +6% £1.4bn £0.8bn1 +2% excluding Income Costs UK Wealth transfer Q422: £1.3bn Q422: £0.8bn 1.4 1.4 1.3 29 29 29 30 32 26 27
Slide 18: CIB Q423 RoTE decline driven by lower income
CIB Q423 RoTE decline driven by lower income Barclays FY 2023 Results February 2024 18 Performance Income (£bn) Income by business (£m) USD YoY % YoY % £2.4bn £2.1bn1 3.1 Investment Income Costs Advisory, 171 -13% -7% Banking Q422: £2.6bn Q422: £2.0bn 0.4 ECM, 38 -5% +2% 2.6 87%1 £23m 2.4 DCM, 301 +
Slide 19: CIB income impacted by lower Global Markets income
CIB income impacted by lower Global Markets income Barclays FY 2023 Results February 2024 19 Low income in Q423 against a record Market share gains driving higher annual income Q422 FICC comparator1 Income (£bn) Markets share2,3 Record Q422 FICC Equities comparator1 reflecting (%) 7.0 6.7 6.3 6.5 in
Slide 20: Consistent capital and liquidity over time
Consistent capital and liquidity over time Barclays FY 2023 Results February 2024 20 Historical performance 13.8% 13.8% 12.0% MDA1 hurdle CET1 ratio 13-14% target 2019 2020 2021 2022 2023 82% 74% Loan: deposit ratio Prudent LDR over time 2019 2020 2021 2022 2023 161% Average Liquidity 155% Coverage
Slide 21: Strong CET1 ratio towards upper end of 13-14% target range
Strong CET1 ratio towards upper end of 13-14% target range Barclays FY 2023 Results February 2024 21 Q423 CET1 ratio movements 18bps (9bps) (23bps) (9bps) c.(30bps) 14.0% 13.8% 13.5% 1 Sep-23 Attributable Dividend RWA Other Dec-23 FY23 Dec-23 profit (excl. accrual ex. FX announced rebased SCA) buyba
Slide 22: Revised guidance on regulatory driven RWA inflation
Revised guidance on regulatory driven RWA inflation Barclays FY 2023 Results February 2024 22 Overall impact still expected at lower end of 5-10% of Group RWAs, with changed mix of drivers Basel 3.1 Lower end of 5-10% RWA inflation of Dec-23 position US Cards IRB c.£16bn H224 Q325 US Cards IRB: Expe
Slide 23: US Cards portfolio IRB migration
US Cards portfolio IRB migration Barclays FY 2023 Results February 2024 23 Aside from US Cards, no material impact in current portfolios from model migration expected Context Impact The key difference between IRB and standardised is the model now RWA impact c.£16bn in H224 captures unused credit lin
Slide 24: A strong foundation to improve financial performance going forward
A strong foundation to improve financial performance going forward Barclays FY 2023 Results February 2024 24 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 CIR (guidance: low 60s%) 331p £1.75bn TNAV per share Share buybacks (up 36p YoY)
Slide 25: Q&A
Q&A
Slide 26: Barclays: Simpler, Better, More balanced
Barclays Simpler, Better, More balanced Investor Update: 20th February 2024
Slide 27: Barclays today
Barclays today Barclays Investor Update February 2024 27 Strong customer franchises in the UK and US >20m 25% 20m 330 years of innovation Barclays UK UK corporates US credit customers are clients1 card customers We have built a leading Global Markets and Investment Banking business Top 3 =#1 #1 Lead
Slide 28: Over the last decade we have become well-capitalised and leaner
Over the last decade we have become well-capitalised and leaner Barclays Investor Update February 2024 28 Strategy Update Non-priority business exits Investor Update May 20141 • Africa February 2024 139,600 92,400 • Commodities • Europe retail banking colleagues • Reduced non-CIB footprint in Asia c
Slide 29: Improved RoTE and increased distributions with room to grow
Improved RoTE and increased distributions with room to grow Barclays Investor Update February 2024 29 Strong Return on Tangible Equity in each of the last three years 10.6%1 SCA 1.6% Impact1 13.1% 10.4% 9.0% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Increased shareholder distributions: distr
Slide 30: We know we need to do even better
We know we need to do even better Barclays Investor Update February 2024 30 Operationally Financially “Consistently excellent” Drive towards higher returns within our divisions Demonstrate stronger cost control Improve customer experience Invest RWAs in higher returning consumer and corporate busine
Slide 31: Targets 2023, 2024, 2026
Which will deliver Barclays Investor Update February 2024 31 Targets 2023 2024 2026 Statutory 9.0%1 >10% >12% RoTE £7.7bn At least £10bn Total Payout 2024-2026 2021-2023 c.50% of market cap2 Investment Bank RWAs 63%3 c.50% (% of Group) This multiyear plan is subject to supervisory and Board approval
Slide 32: Our journey to achieve Simpler, Better, More balanced
Our journey to achieve Barclays Investor Update February 2024 32 Simpler Better More balanced
Slide 33: What Simpler means
What Simpler means Barclays Investor Update February 2024 33 Simpler business Simpler organisation Simpler operations
Slide 34: Simpler business: five focused divisions
Simpler business: five focused divisions Barclays Investor Update February 2024 34 Ring-fenced bank Barclays International Barclays UK Consumer, Cards and Payments Corporate and Investment Bank Barclays UK (BUK) Private Bank & Wealth US Consumer Bank UK Corporate Bank Investment Bank Management (PBW
Slide 35: Simpler organisation and operations: continuing the journey
Simpler organisation and operations: continuing the journey Barclays Investor Update February 2024 35 Reduce organisational Continue to upgrade legacy Further uplift operational complexity technology controls Starting point We will continue Example actions Outcome BX1 c.70k FTEs2 Reposition c.30% Si
Slide 36: What Better means?
What Better means? Barclays Investor Update February 2024 36 Better returns Better investments Better quality income Better customer experience and outcomes
Slide 37: Better returns: our divisions contribute through growth and performance
Better returns: our divisions contribute through growth and performance Barclays Investor Update February 2024 37 Statutory RoTE 2021 2022 2023 2024 2026 Barclays UK 18% 19% 19% High teens % Barclays UK Corporate Bank 14% 19% 20% High teens % Barclays 36% 33% >25% Private Bank & Wealth Management 23
Slide 38: Better investments: facilitating growth in all divisions
Better investments: facilitating growth in all divisions Barclays Investor Update February 2024 38 Investments in businesses outside of the Investment Bank1 £bn cost spend (P&L) Barclays Investment Bank Barclays US Consumer Bank Investing more on driving future returns Barclays Private Bank and Weal
Slide 39: Better quality income: diverse sources of income to support growth
Better quality income: diverse sources of income to support growth Barclays Investor Update February 2024 39 Income (£bn) c.30 +c.15% 24.71 25.4 2.0 21.9 2.2 We have grown more Investment 4.3 stable income streams 3.7 banking fees 5.71 +14% +c.35% since 2021 +19% 2.9 4.3 Intermediation 2.9 More stab
Slide 40: Better customer experience and outcomes: where we need to do more
Better customer experience and outcomes: where we need to do more Barclays Investor Update February 2024 40 Barclays today Barclays tomorrow • Barclays UK Brand NPS ranked 8th1 • More resilient platforms • Tailored servicing model • Enhanced offerings • 56% of UK Corporate clients rate overall • Mor
Slide 41: What More balanced means?
What More balanced means? Barclays Investor Update February 2024 41 More balanced allocation of RWAs More balanced geographical footprint
Slide 42: Capital allocation to our highest returning divisions
Capital allocation to our highest returning divisions Barclays Investor Update February 2024 42 Statutory RoTE RWA% of Group RWA 2023 Growth Drivers FY21-FY23 average 2023 2026 vs. 2023 Barclays UK 19% 21% £74bn Allocation of RWAs across the three Barclays UK Corporate Bank 18% 6% £21bn +c.£30bn hig
Slide 43: Barclays Investment Bank c.50% of Group RWAs by 2026
Barclays Investment Bank c.50% of Group RWAs by 2026 Barclays Investor Update February 2024 43 Investment Bank competitive and at scale Corporate & Investment Bank Investment Bank Investment Bank 2023 2023 2026 63% 58% c.50% % of Group RWA Re-segmented Group Includes Global Markets and Investment Ba
Slide 44: Now is the right time to grow in our UK home market
Now is the right time to grow in our UK home market Barclays Investor Update February 2024 44 1. Deep rooted presence and brand 2. UK economy remains resilient to geopolitical events 3. Strong and trusted regulatory environment 4. London is our global financial centre Aim to become the UK-centred le
Slide 45: Simpler, Better, More balanced: Outcome
Barclays Investor Update 45 February 2024 Simpler Better More balanced Outcome
Slide 46: Statutory RoTE: driving to above 12% by 2026
Statutory RoTE: driving to above 12% by 2026 Barclays Investor Update February 2024 46 >5% <(0.5%) c.(0.5%) Investment Bank c.(2.0%) FY23 c.(0.5%) Retail & adjusted >1.5% c.(0.0%) Corporate2 <(1.5%) Includes: RoTE: 10.6%1 1.6% Cash flow hedge reserve amortisation c.>(0.5)% Includes: Incremental equi
Slide 47: Income: deploying c.£30bn of RWA to our home UK market
Income: deploying c.£30bn of RWA to our home UK market Barclays Investor Update February 2024 47 Income (£bn) Lending growth underpinned by c.£30bn RWA deployment c.30 Product 2023 Action 25.4 PBWM 1.2 6% Grow presence High LTV mortgages UKC 1.8 total book1 Leverage Kensington2 Grow Business Banking
Slide 48: Income: predictable uplift from the structural hedge
Income: predictable uplift from the structural hedge Barclays Investor Update February 2024 48 10.0 4.1% 09.0 3.4% Gross contribution 08.0 resilient to marginal 07.0 changes in rates and notionals 06.0 1.5% 1.1% Average hedge yield1 1.1% 0.9% 0.9% 05.0 5-year swap rate2 0.7% 0.7% 04.0 0.0% 03.0 02.0
Slide 49: Income: realistic assumptions underpin Investment Bank growth
Income: realistic assumptions underpin Investment Bank growth Barclays Investor Update February 2024 49 • Markets broadly flat 18.0 252 • Banking reverting 300.0 218 204 to 10-year average 16.0 c.200 172 178 200.0 Combined 14.0 Wallet $bn1 12.0 100.0 0.0 Investment 10.0 2.2 2.7 Banking 08.0 3.7 2.0
Slide 50: Costs: c.£2bn cost efficiency by 2026
Costs: c.£2bn cost efficiency by 2026 Barclays Investor Update February 2024 50 CIR CIR 63%1 High 50s% £bn Q423 0.9 SCAs 1.7 • Efficiency savings more than offsetting c.0.2 c.(0.1) inflation c.(2.0) 1.2 o c.£0.5bn in 2024 from £1.0bn of structural cost actions in 2023 o c.£1.5bn driven by prior and
Slide 51: Costs: lower regulatory change spend facilitates investments in growth
Costs: lower regulatory change spend facilitates investments in growth Barclays Investor Update February 2024 51 Total investment (including structural cost actions) £bn cost spend (P&L) Structural cost actions Investments (income growth and protection and cost efficiency) Regulation and control 2.3
Slide 52: Costs: better CIRs and opportunity vs. best in class
Costs: better CIRs and opportunity vs. best in class Barclays Investor Update February 2024 52 c.£2bn cost efficiency savings by business1 Cost: income ratio Top quartile peer benchmark as at FY222 2024-26 2021 2022 20234 2026 68% Barclays UK c.£0.7bn 60% 56% c.50% Barclays UK Corporate Bank c.£0.1b
Slide 53: Impairment: lending growth to maintain loan loss rate of 50-60bps
Impairment: lending growth to maintain loan loss rate of 50-60bps Barclays Investor Update February 2024 53 Significant risk transfers provide loss protection £348bn Customer loans 36% protection against c.£50bn of exposure1 £328bn and advances Maintaining risk discipline as we grow unsecured lendin
Slide 54: Plan returns based on realistic scenarios
Plan returns based on realistic scenarios Barclays Investor Update February 2024 54 Unemployment Inflation 7.4% 4.8% 4.7% 4.8% UK Statutory RoTE UK 4.3% US 4.3% 4.3% 4.3% US 3.0% 4.1% 3.7% 2.1% 2.1% 2.7% 2.0% 2023 2024 2026 1.9% 2023 2024 2025 2026 2023 2024 2025 2026 UK rates Markets & Banking wall
Slide 55: Capital distributions: prioritising returns to shareholders
Capital distributions: prioritising returns to shareholders Barclays Investor Update February 2024 55 1. Regulatory capital 2. Shareholder distributions 3. Investment Protect our customers, Increase returns to our Grow our business for the clients and investors shareholders benefit of all our stakeh
Slide 56: Capital distributions: greater free capital available to shareholders
Capital distributions: greater free capital available to shareholders Barclays Investor Update February 2024 56 RoTE targets will drive higher Shareholders to receive greater capital generation proportion of capital generated Statutory RoTE Capital generation1 Capital generation from 2024-26 Reg cha
Slide 57: Capital distributions: plan to return at least £10bn 2024-2026
Capital distributions: plan to return at least £10bn1 Barclays Investor Update February 2024 57 2024-2026 2025-2026 Plan to return 2023 2024 at least Progressive £3.0bn Broadly in line increase £10bn with 2023 £1.8bn buyback 2024-261 £1.2bn dividend c.15% of market cap2 c.50% of market cap2 Capital
Slide 58: Our financial goals for the next three years
Our financial goals for the next three years Barclays Investor Update February 2024 58 Targets 2023 2024 2026 Statutory RoTE 9.0% >10% >12% Total payout £7.7bn > At least £10bn1 2021-2023 2024-2026 Investment Bank RWA 63%2 > c.50% (% of Group) Supporting targets 2023 2024 2026 Income £25.4bn > c.£30
Slide 59: Why Barclays?
Why Barclays? Barclays Investor Update February 2024 59 1 High returning UK retail and corporate franchises 2 Top-tier global Investment Bank with focus and scale, operating in core UK and US markets 3 Multiple levers to allocate capital in a disciplined way to drive growth within higher returning d
Slide 60: Q&A
Q&A Barclays Simpler, Better, More balanced
Slide 61: ies. armas
- — ies. armas #) BARCLAYS
Slide 62: Barclays Investment Bank
Barclays Investment Bank Investor Update: 20th February 2024
Slide 63: Introducing Barclays Investment Bank
Introducing Barclays Investment Bank Barclays Investor Update February 2024 63 Corporate and Investment Bank £12.6bn (2023 income) Barclays Investment Bank UK Corporate Bank £11.0bn £1.6bn1 Global Markets £7.2bn Investment Banking £3.8bn UK Corporate Bank FICC £4.8bn Investment Banking Fees £2.0bn •
Slide 64: Barclays Investment Bank today
Barclays Investment Bank today Barclays Investor Update February 2024 64 Leading non-US investment bank2 At scale, focused Global Markets and Investment Banking franchises International Corporate Bank Rest of the world FICC Investment Banking Fees Income by Income by Core strengths geography1 busine
Slide 65: Strong research franchise underpins our client relationships
Strong research franchise underpins our client relationships Barclays Investor Update February 2024 65 Equity Research Credit Research Macro Research 1,700+ 900+ Integrated offering across economics, Barclays Rankings1 companies under issuers under rates, FX and EM coverage coverage #4 Global Resear
Slide 66: Financial performance 2021-23
Financial performance 2021-23 Barclays Investor Update February 2024 66 Financials 2021 2022 2023 14% RoTE 9% 7% 11.1 11.91 11.0 Income (£bn) 8.3 Cost (£bn) 6.5 7.7 Cost: income 59% 69% 70% 5.0 PBT (£bn) 3.5 3.2 196 197 RWA (£bn) 182 Income/ Average RWA (%) 6.4% 5.8% 5.5% 1 Excluding Over-issuance o
Slide 67: Stable income in different macro-economic and market environments
Stable income in different macro-economic and market environments Barclays Investor Update February 2024 67 11.3 11.61 11.1 11.0 2.2 Total (£bn) 8.9 2.7 2.0 3.7 Investment Banking fees 2.5 5.71 4.3 5.8 4.3 Intermediation2 3.4 2.9 Financing2 1.8 1.8 2.2 2.9 International 1.8 Corporate Bank3 1.1 1.0 1
Slide 68: Scale businesses at different stages of progress
Scale businesses at different stages of progress Barclays Investor Update February 2024 68 Business today Business tomorrow Global Markets • Monetise technology and capital investments Significant technology and capital investments already made made since 2019 • Consolidate gains in Financing • Deep
Slide 69: Over half of income growth driven by executing management actions
Over half of income growth driven by executing management actions Barclays Investor Update February 2024 69 Investment Banking Global Markets c.£1.1bn c.£0.7bn • Markets broadly flat • Banking reverting to 10-year mean High single digit CAGR £11bn Initiatives driven by executing management actions 2
Slide 70: Plan to increase RWA productivity in Investment Banking
Plan to increase RWA productivity in Investment Banking Barclays Investor Update February 2024 70 Global Markets 7.2 Investment Banking Income 5.3 Income 3.6 3.8 (£bn) 116 (£bn) 84 Average RWA 86 Average RWA 68 (£bn) (£bn) Income/ 6.1% 6.2% Income/ Average RWA 5.4% 4.6% Average RWA 2019 2020 2021 20
Slide 71: Modest cost growth due to prior investments in technology and people
Modest cost growth due to prior investments in technology and people Barclays Investor Update February 2024 71 High single Income (£bn) 8.9 11.1 11.0 digit CAGR Cost: income ratio 73% 59% 70% High 50s % ~ stable RetailEfficiencies & self-funding focused Corporateinvestments and offsetting inflation
Slide 72: Investment Banking
Investment Banking
Slide 73: Investment Banking today
Investment Banking today Barclays Investor Update February 2024 73 #6 #1 Global IB Fees1 UK IB Fees1 Leading franchises with further potential Top 5 Top 5 Global Sponsors franchise1 Global DCM franchise1 Sponsors International Advisory Focus on attractive US and UK markets2 Corporate Bank APAC 7% 10
Slide 74: Leverage DCM strengths to enhance returns
Leverage DCM strengths to enhance returns Barclays Investor Update February 2024 74 Strong corporate client relationships Driving greater number of non-lending products and capabilities with existing clients Proportion of clients we lend to2 #5 Access to global in DCM globally1 capital markets More
Slide 75: Integrated International Corporate Bank platform
Integrated International Corporate Bank platform Barclays Investor Update February 2024 75 Leverage ICB opportunity with multinational clients outside the UK Proportion of clients1 8% • Strong cross-border client proposition 48% 70% 65% • Capital efficient growth 92% • High quality income 52% 35% c.
Slide 76: Rebalance footprint towards ECM and Advisory
Rebalance footprint towards ECM and Advisory Barclays Investor Update February 2024 76 Currently underweight ECM and Advisory1 Invested in talent in high growth sectors 43% 35% Tech, Energy, >60% senior hiring in Tech, Healthcare Healthcare, Energy Transition, 35% share of Sponsors, ECM and M&A in 2
Slide 77: Investment Banking 2026: Simpler, Better and More balanced
Investment Banking 2026: Simpler, Better and More balanced Barclays Investor Update February 2024 77 Simpler • Integrated International Corporate Bank platform >£0.7bn income growth • Leverage DCM strengths from management actions Better to enhance returns • Deepen client relationships Improve Incom
Slide 78: Global Markets
Global Markets
Slide 79: Global Markets today
Global Markets today Barclays Investor Update February 2024 79 Executed Markets Strategy to reset baseline income average Only non-US bank Diversified across Leading financing +£2.2bn with scale access to businesses franchise: more US client base stable income £7.5bn £5.3bn Rest of the Equities Spre
Slide 80: Simpler: monetise our deep client relationships
Simpler: monetise our deep client relationships Barclays Investor Update February 2024 80 #5 Global Markets franchise by client share1 Ranked Top 5 counterpart by half of our Top 100 clients1 Markets FICC Equities • =#5 Global G10 Rates Target • =#2 Global G10 Credit 70 2023 #5 #4 #5 • #4 Americas F
Slide 81: Simpler: maintain our prudent risk management
Simpler: maintain our prudent risk management Barclays Investor Update February 2024 81 Growth in client volumes underpinned by disciplined Increased floor on income since 2019 approach to risk Daily trading income distribution3 £100m Russia/ 1.0bn Average +£11m Pandemic Ukraine per day 0.9bn Increa
Slide 82: Better: sustain momentum in our businesses with Top market share
Better: sustain momentum in our businesses with Top 5 market share Barclays Investor Update February 2024 82 Barclays businesses with Top 5 market share Including: Prime | Fixed Income Financing | Credit | Corporate Equity Derivatives Businesses with Top 5 Market share2 Share of Barclays Income & RW
Slide 83: Better: grow our next focus businesses
Better: grow our next focus businesses Barclays Investor Update February 2024 83 Our next focus businesses Market share2 1. European No presence 6%2 c.5% ~7.5% Rates Businesses without Top 5 Industry market 2. Derivatives Equity ~4.5% Wallet c.£0.5bn share 41%2 c.£100bn1 income by 2026 Securitised M
Slide 84: Better: improve our electronic offering
Better: improve our electronic offering Barclays Investor Update February 2024 84 Since 20211 Stronger platforms Simplify Stable #1 London Stock Exchange for three 35% 78% years running2 reduction in legacy feeds reduction in technology outages Top 3 average EMEA Rates Cash across major platforms3 8
Slide 85: More balanced: continue scaling more stable financing income
More balanced: continue scaling more stable financing income Barclays Investor Update February 2024 85 Joint #1 Fixed Income Financing1 Joint #5 Prime Services1 (Joint #3 in 2019) (#7 in 2019) Financing Target • Represents 36% of Global c.5% Markets income 2021-2023 CAGR • High returning, RWA-effici
Slide 86: Global Markets 2026: Journey to Simpler, Better and More balanced
Global Markets 2026: Journey to Simpler, Better and More balanced Barclays Investor Update February 2024 86 Simpler • Monetise our deep client relationships 70 • Maintain our prudent risk Top 5 rank with the Top 100 clients management Better • Sustain momentum in our businesses with Top 5 market sha
Slide 87: Barclays Investment Bank
Barclays Investment Bank
Slide 88: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 88 Financials 2021 2022 2023 2026 Targets 14% RoTE 9% 7% In line with Group 11.91 Income (£bn) 11.1 11.0 High single digit CAGR 69% 70% Cost: income 59% High 50s % Broadly stable RWA (£bn) 182 196 197 c.50% of Group RWA Incom
Slide 89: US Consumer Bank
US Consumer Bank Investor Update: 20th February 2024
Slide 90: Barclays US Consumer Bank today
Barclays US Consumer Bank today Barclays Investor Update February 2024 90 US Cards Market3 20+ years of expertise in US cards Partner Non-retail #9 US card issuer1 $430bn $180bn A leading issuer in US partner cards market1,3 $430bn $1.25trn partner 20 client partners Total Non-partner cards Retail c
Slide 91: Our ability to succeed in the attractive US partner market
Our ability to succeed in the attractive US partner market Barclays Investor Update February 2024 91 3rd 5% >80%3 >200m4 largest card balances CAGR over of US cardholders use customers we can access market globally1 past 10 years rewards cards through our partners Specialised capabilities required t
Slide 92: With 20 leading US brands as our partners
With 20 leading US brands as our partners Barclays Investor Update February 2024 92 Launching March 2024:
Slide 93: Financial performance 2021-23
Financial performance 2021-23 Barclays Investor Update February 2024 93 Key Metrics1 2021 2022 2023 17% RoTE 13% 4% End Net Receivables ($bn) 22 29 32 Income (£bn) 1.8 2.6 3.3 Net interest margin (%) 7.6% 9.7% 10.9% Cost: Income ratio (%) 60% 58% 51% Loan Loss Rate (bps)2 116 237 514 RWA (£bn) 17.1
Slide 94: Focus areas: RoTE, Impairment, IRB capital headwind
Focus areas Barclays Investor Update February 2024 94 • Long track record of growth and returns RoTE • Target 2026 RoTE (including IRB) is in line with Group target, mid-teens thereafter • Long track record of prudent risk management Impairment • Reserve rebuild in 2023 from COVID lows • Trend towar
Slide 95: Path to delivering RoTE in line with Group target by 2026
Path to delivering RoTE in line with Group target by 2026 Barclays Investor Update February 2024 95 Improving RoTE whilst absorbing regulatory headwinds In line with Group target 4.1% 2023 Impairment Scale and NIM expansion Balance sheet Late fees 1 IRB 2026 actual stabilisation operational optimisa
Slide 96: Long track record of growth and returns
Long track record of growth and returns Barclays Investor Update February 2024 96 c.8.5% receivables CAGR1, and c.400bps average LLR1 40 22% 25 Covid-19: 18% 18% 20 17% impacted by 17% 16% 16% impairment 13% 30 15% reserve build 12% 15 9% 10 20 4% 5% 28 27 27 29 26 32 21 23 21 22 0% 10 14 16 12 -5 -
Slide 97: Delinquency rates consistently well-positioned among leading US card issuers
Delinquency rates consistently well-positioned among leading US card issuers Barclays Investor Update February 2024 97 USCB 30 day delinquency rates vs peers 6.0% 4.0% 2.0% 0.0% 2013 2015 2017 2019 2021 2023 USCB Top US Issuers 1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LLR (bps)2 268
Slide 98: Higher delinquencies in US cards driving impairment reserve build
Higher delinquencies in US cards driving impairment reserve build Barclays Investor Update February 2024 98 2.9% 2.7% 30 day delinquencies 2.2% 2.3% 2.4% 2.0% 1.6% 1.4% Forecast LLR to trend Loan loss rate (bps)1 towards long term 259 179 257 337 515 411 582 636 514 average of c.400bps 1,438 809 Tot
Slide 99: Journey to Simpler, Better and More balanced
Journey to Simpler, Better and More balanced Barclays Investor Update February 2024 99 Simpler Better More balanced Scale and diversify by growing existing partnerships Investing in digitisation and winning new partners to deliver operational Improve NIM by optimising pricing and credit mix, efficie
Slide 100: Simpler: path to improving operational efficiency
Simpler: path to improving operational efficiency Barclays Investor Update February 2024 100 Leverage from scale and Combined with margin uplifts, Investing in digitisation investments driving down unit costs drives down CIR and automation Cost per average active account1 Cost-income ratio Better di
Slide 101: Better and More balanced portfolio to drive increased margins
Better and More balanced portfolio to drive increased margins Barclays Investor Update February 2024 101 Net Interest Margin1 Grow balances • Grow balances from $32bn to c.$40bn by 2026 and diversify >12% towards retail • Increase retail as % of portfolio from c.15% to c.20% by 2026 • Rebalance FICO
Slide 102: More balanced: plan to absorb and reduce IRB impacts
More balanced: plan to absorb and reduce IRB impacts Barclays Investor Update February 2024 102 Impact Our response RWA Density (pre-mitigating actions)1 +60% • Management of credit lines and business models based on new IRB requirements c.160% c.140% 100% 2023 2023 IRB 2023 Basel 3.1 • Execute sele
Slide 103: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 103 Key Metrics1 2021 2022 2023 2026 Targets 17% RoTE 13% 4% In line with Group End Net Receivables ($bn) 22 29 32 c.$40bn (c.£31bn)2 Net interest margin 7.6% 9.7% 10.9% >12% Cost: Income ratio (%) 60% 58% 51% Mid-40s % Loan
Slide 104: Barclays UK
Barclays UK Investor Update: 20th February 2024
Slide 105: Barclays UK today
Barclays UK today Barclays Investor Update February 2024 105 Income by segment Income by type Long-established scale player with trusted brand c.20m Personal Banking customers1 Business Banking Non-NII c.5m Credit card accounts1 £1.9bn £1.2bn c.1m Business banking customers £7.6bn £7.6bn 2023 2023 B
Slide 106: Financial performance 2021-23
Financial performance 2021-23 Barclays Investor Update February 2024 106 2021 2022 2023 RoTE 18% 19% 19% 7.3 7.6 Total income (£bn) 6.5 6.4 Net interest income (£bn) 5.2 5.9 Cost: income ratio 68% 60% 58% 13 14 Loan Loss Rate (bps) (16) Loan: deposit ratio (%) 85% 87% 92%
Slide 107: Journey to Simpler, Better and More balanced
Journey to Simpler, Better and More balanced Barclays Investor Update February 2024 107 Simpler Better More balanced Deliver operational Focus on improving Grow lending market efficiencies to facilitate customer relationships share investment in growth
Slide 108: Simpler: deliver operational efficiency
Simpler: deliver operational efficiency Barclays Investor Update February 2024 108 Barclays UK today Barclays UK tomorrow CIR: 58% vs. peers1 Distribution 18% • Redesigned customer service model 900+ • Branch footprint optimisation Physical touchpoints2 Operations & technology 24% • Increased digita
Slide 109: Simpler: facilitating investment in growth
Simpler: facilitating investment in growth Barclays Investor Update February 2024 109 Cost outlook (£bn) Transformation Investments1 Cost: income Revenue growth, cost efficiency and 68% 58% c.50% ratio regulation and control Total costs 4.4 4.4 Transformation 0.3 (0.7) Investments1 Base costs 4.6 4.
Slide 110: Better: focus on improving customer relationships
Better: focus on improving customer relationships Barclays Investor Update February 2024 110 Barclays UK today Barclays UK tomorrow 18 17 Barclays Brand NPS1 Improve Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 customer Personal Banking satisfaction Deposits 32% • Better processes & service model 11% Current
Slide 111: More balanced: opportunity to grow lending market share
More balanced: opportunity to grow lending market share Barclays Investor Update February 2024 111 Barclays UK today Barclays UK tomorrow 2019 2023 • Simplified customer journeys Grow Unsecured Credit card1 22% 15% • Enhanced risk and affordability models market Market share Consumer • Launch dual b
Slide 112: More balanced: maintaining risk discipline whilst achieving growth
More balanced: maintaining risk discipline whilst achieving growth Barclays Investor Update February 2024 112 Evolution of Barclays UK impairment Loan Loss Rate Barclays UK Strategic positioning amid 2019: 36bps economic uncertainty 0bps 2023 2026 2019 100bps For example: Cards 2023: 14bps Well-posi
Slide 113: Tesco Bank acquisition and partnership underpins growth ambitions
Tesco Bank acquisition and partnership underpins growth ambitions Barclays Investor Update February 2024 113 Portfolios to be acquired1 Consistent with our ambitions Further opportunities Credit cards Proforma Partnership to grow Barclays UK • Grow market share in Tesco branded loans key portfolio
Slide 114: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 114 Financials 2021 2022 2023 2026 Targets RoTE 18% 19% 19% High teens % 7.6 Total income (£bn) 6.5 7.3 Mid-single digits NII CAGR Net interest income (£bn) 5.2 5.9 6.4 2024 NII c.£6.1bn1 Cost: income ratio 68% 60% 58% c.50%
Slide 115: Barclays UK Corporate Bank
Barclays UK Corporate Bank Investor Update: 20th February 2024
Slide 116: Barclays UK Corporate Bank today
Barclays UK Corporate Bank today Barclays Investor Update February 2024 116 Long-established scale player Barclays UK Barclays Barclays delivering high returns Business Banking UK Corporate Bank Investment Bank <£6.5m £6.5m annual turnover- FTSE350, multinationals 18-year average client relationship
Slide 117: Our proposition, and evolving client needs
Our proposition, and evolving client needs Barclays Investor Update February 2024 117 Delivering a full-service proposition… Client needs continue to evolve, and we innovate to meet them Financing Investing Making surplus funds payments We’re focused on: • Our leading payments ecosystem Transitionin
Slide 118: Barclays provides a leading payments ecosystem
Barclays provides a leading payments ecosystem Barclays Investor Update February 2024 118 Powered in house and through partners Strong distribution SME Large corporates capabilities Payments/ receipt Account to account1 Card Issuing Merchant Acquiring2 types Payments from buyers Physical and virtual
Slide 119: Simpler: drive productivity and seamless digital delivery
Simpler: drive productivity and seamless digital delivery Barclays Investor Update February 2024 119 Barclays UK Corporate Bank today Barclays UK Corporate Bank tomorrow Seamless service with digital capabilities Significant progress made Focus areas • Launched iPortal client channel • Enhance iPort
Slide 120: Better: grow broad-based income through deeper client relationships
Better: grow broad-based income through deeper client relationships Barclays Investor Update February 2024 120 Barclays UK Corporate Bank today Barclays UK Corporate Bank tomorrow Strategic expertise and high-quality solutions Significant progress made… Focus areas… • Deep industry specialism, with
Slide 121: More Balanced: well-positioned to grow lending, and attract new clients
More Balanced: well-positioned to grow lending, and attract new clients Barclays Investor Update February 2024 121 Barclays UK Corporate Bank today Barclays UK Corporate Bank tomorrow Simpler access to finance Lending market share significantly • Increase allocation of Group RWA below relationship s
Slide 122: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 122 Financials 2021 2022 2023 2026 Targets RoTE 14% 19% 20% High teens % Deliver high-quality growth Income (£bn) 1.3 1.7 1.8 across broad sources Cost: income ratio 59% 49% 52% High 40s % Credit impairment releases 137 0 27
Slide 123: Barclays Private Bank & Wealth Management
Barclays Private Bank & Wealth Management Investor Update: 20th February 2024
Slide 124: Barclays Private Bank & Wealth Management today
Barclays Private Bank & Wealth Management today Barclays Investor Update February 2024 124 Serving our clients across: Strong and diversified CAL1 growth +10% CAGR 2018-20232 UK Digital Investing from £1 Product UK Wealth Management from £500k+ Investments Lending UK Private Bank from £3m+ £183bn De
Slide 125: Today's financials
Today’s financials Barclays Investor Update February 2024 125 Financials1 2021 2022 2023 RoTE 29% 31% 14% Income (£bn) 1.0 1.2 1.3 Cost: income ratio 86% 69% 69% 161 167 183 20 Client assets and liabilities 26 19 (£bn) 135 148 163 Private Bank2 UK Wealth 1 Rebased to include UK Wealth from 1/1/2021
Slide 126: Simpler & Better: unified Private Bank & Wealth Management
Simpler & Better: unified Private Bank & Wealth Management Barclays Investor Update February 2024 126 Simpler: one global investment function across Better: uniquely positioned to leverage Private Bank & Wealth Management synergies across Barclays Private Bank Two-way referral flows One global Wealt
Slide 127: More balanced: opportunity to scale and develop UK Wealth offering
More balanced: opportunity to scale and develop UK Wealth offering Barclays Investor Update February 2024 127 Business today Business tomorrow UK Digital investing Simpler and New pricing quicker to invest • Platform with broad capabilities and Competitive and high operating leverage accessible • In
Slide 128: More balanced: continue to grow Private Bank fee income
More balanced: continue to grow Private Bank fee income Barclays Investor Update February 2024 128 Business today Business tomorrow UK Private Bank • Grow Bankers, with greater productivity • Banker and specialist expertise • Proposition enhancements, eg: Alternatives • Personal high-touch service a
Slide 129: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 129 Financials1 2021 2022 2023 2026 Targets RoTE 14% 29% 31% >25% Deliver high-quality growth Income (£bn) 1.2 1.3 1.0 across broad sources Cost: income ratio 86% 69% 69% High 60s % 167 183 161 20 Client assets and liabilitie
Slide 130: Q&A
Q&A
Slide 131: Why Barclays?
Why Barclays? Barclays Investor Update February 2024 131 1 High returning UK retail and corporate franchises 2 Top-tier global Investment Bank with focus and scale, operating in core UK and US markets 3 Multiple levers to allocate capital in a disciplined way to drive growth within higher returning
Slide 132: Appendix
Appendix
Slide 133: Macroeconomic assumptions
Macroeconomic assumptions Barclays Investor Update February 2024 132 Assumptions 2023 2024 2025 2026 UK GDP1 0.5% 0.2% 1.1% 1.6% UK unemployment2 4.3% 4.8% 4.7% 4.8% UK bank rate3 5.25% 4.00% 3.25% 3.25% Sterling 5-year swap rate4 3.36% 3.58% 3.49% 3.49% UK inflation5 7.4% 3.0% 1.9% 2.0% US GDP1 2.4
Slide 134: We continue to advance our ESG agenda
We continue to advance our ESG agenda Barclays FY 2023 Results February 2024 134 Barclays has been named as the Best Bank for ESG1 in the UK for 2023 Environment Social Governance • Policy: Updated Climate Change Statement in February 2024, with new financing restrictions for upstream Oil and Gas2 •
Slide 135: Long-term prudent risk positioning in our credit card portfolios
Long-term prudent risk positioning in our credit card portfolios Barclays FY 2023 Results February 2024 135 UK cards US cards • Balances c.34% lower vs. FY19 with strong and stable credit quality • Controlled portfolio growth with improved risk mix • Repayment rates remain elevated across the risk s
Slide 136: Resilient mortgage book with customers proactively locking in rates
Resilient mortgage book with customers proactively locking in rates Barclays FY 2023 Results February 2024 136 Mortgage portfolio Maturity profile • 53.6% average balance weighted LTV of mortgage stock • 19% of total balances maturing during 20241 o 40.0% average valuation weighted LTV • Offering cu
Slide 137: Impairment: Q423 corporate loan exposure
Impairment: Q423 corporate loan exposure Barclays FY 2023 Results February 2024 137 Gross loans and advances Corporate loans by sector and debt securities (£bn) SRT protection £405bn • c.36% synthetic protection2 against c.£50bn of funded on-balance sheet exposure in the Corporate lending portfolio
Slide 138: Commercial Real Estate exposure is modest and well managed
Commercial Real Estate exposure is modest and well managed Barclays FY 2023 Results February 2024 138 December 2023: 4.5%1 of customer loans and advances (L&A), with a weighted average LTV of 49%2 Retail Customer loans & Construction £1.0bn £348bn advances3 £2.7bn Residential Dec 2023: £4.2bn £15.8b
Slide 139: Diverse and stable franchise deposit base
Diverse and stable franchise deposit base Barclays FY 2023 Results February 2024 139 CIB Corporates: BUK: Personal Banking £203bn3, +9% £185bn, -5% • CIB: Corporate Bank £171bn • 72% insured o >20% insured4 • >75% of relationships 5+ years o c.60% of UK relationships 5+ years o No sector concentrati
Slide 140: Prudently managed LCR supported by a highly liquid balance sheet
Prudently managed LCR supported by a highly liquid balance sheet Barclays FY 2023 Results February 2024 140 Average LCR1 78% of Liquidity Pool held in cash HTC £19bn 160% 159% 159% 161% FVOCI 6% 157% 156% 156% 157% 157% £47bn 16% Liquidity Pool Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 £298bn Min
Slide 141: Risk weighted assets
Risk weighted assets Barclays FY 2023 Results February 2024 141 Q423 RWA movements (£bn) 4.6 (5.0) 0.2 1.1 341.9 342.7 Sep-23 Book size Methodology and policy FX¹ Other Dec-23 FY23 RWA movements (£bn) 7.9 (8.2) 0.7 5.9 342.7 336.5 Dec-22 Book size Methodology and policy FX¹ Other Dec-23 1 Foreign ex
Slide 142: CET1 ratio with significant headroom to MDA
CET1 ratio with significant headroom to MDA Barclays FY 2023 Results February 2024 142 CET1 minimum requirements at Dec-23 Leverage minimum requirements at Dec-23 MDA1 12.0% CCyB 0.9% Reg Min CCB 4.08% 2.5% CCLB 0.30% G-SII G-SII 1.5% 0.53% 13.8% Pillar 2A 2.6% 5.2% BoE 4.8% minimum leverage 3.25% r
Slide 143: Operating with a prudent buffer to each tier of capital requirements
Operating with a prudent buffer to each tier of capital requirements Barclays FY 2023 Results February 2024 143 AT1 and T2 needs managed on a total capital basis Balanced total capital structure As at Dec-23 • Operating with prudent buffers at each part of the capital stack to manage FX and RWA move
Slide 144: TNAV per share
TNAV per share Barclays FY 2023 Results February 2024 144 QoQ TNAV movements (pence per share) 2 2 (5) (2) (2) 2 18 316 331 Sep-23 Attributable profit Cash flow hedge Share buyback FVOCI reserve Currency Pensions Own credit Dec-23 reserve translation remeasurement reserve reserve YTD TNAV movements
Slide 145: Disclaimer
Disclaimer Barclays FY 2023 Results February 2024 145 Important Notice The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer