Barclays Plc · LSE:BARC
Barclays — IPO Roadshow (August 2013)
59 slides from Barclays's IPO roadshow presentation, Aug 5, 2013
Slide 1: H1 2013 Fixed Income Results Investor Presentation
Free Writing Prospectus Filed Pursuant to Rule 433 Reg. Statement No. 333-173886 Fixed H1 2013 Income Results Investor Presentation
Slide 2: Strategy and Results Update
STRATEGIC Strategy and Results OVERVIEW updateCAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 3: Barclays overview
STRATEGIC Barclays A Major –Total FL Operates London Rated Loan 35421< Wealth Retail, Corporate Fully Net Liquidity |Excluding 1global H1 CET1 year assets to Stable A/A2/A/AA 2013 global loaded Deposit and wholesale Business universal overview & in ratio Coverage Investment over £1.5tr Fixed and New
Slide 4: H1 2013 Highlights
STRATEGIC H1 “Our and Adjusted Highlights improvements (excl. 4IV| H1 fully 2013 - first five CTA 2013 loaded results income months half Transform) Fixed OVERVIEW results inCET1 highlights Corporate down on Income -demonstrate estimated the Cost:Income 3%,execution Investor CAPITAL Banking withatinc
Slide 5: Barclays Delivery on Leverage Plan
STRATEGIC Barclays Delivery Leverage The actions Underwritten Reduction Already No Continue Issuance 51Retention |Prudential H1 material Leverage 2013 ofidentified of Leverage to ratios of £12.8bn: ofup 3% Fixed support impact Regulation earnings leverage rights OVERVIEW Plan toPRA (%) £2bn Income m
Slide 6: Revised Transform financial commitments
STRATEGIC Revised 50% 2014 6Return | H1From Original 2013 on Transform Equity Fixed OVERVIEW 2015 >Income financial CoE Revised > Investor CoE CAPITAL Dates commitments in 2016 Targets Presentation &2016 LEVERAGE Targets Operating | 30 July LIQUIDITY Expenses 2013 £16.8bn & FUNDING £16.8bnASSET 2015
Slide 7: Diversified Composition of Adjusted PBT
STRATEGIC Diversified Composition (£m) Head £309m £4,231m1 £4,339m1 £2,242m £311m £751m £592m Europe (£148m) & 71PBT Adjusted | Other H1slightly down up H1 Office 2013 Corporate Barclaycard UK RBB 14% 42% 21% 4% 11% Ops 2012 Investment 19% PBT RBB profit to Fixed down to (£353m) of OVERVIEW H1 £780m
Slide 8: Capital & Leverage
STRATEGIC 8Capital | H1 2013 & Leverage Fixed OVERVIEW Income Investor CAPITAL Presentation & LEVERAGE| 30 July LIQUIDITY 2013 & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 9: Our Capital Position
STRATEGIC Capital Our Basel 11.0% Łbn 383 38 CT CT1 partially 17.0% 28x 10.8% 8.6% FY 5.6% Total Barclays 9tightly | H1 43 2008 1398 financial ratio capital Capital 433 243 2013 10.8% 17.4% 11.0% manages and Basel 391 offset FY also 42 has leverage Fixed 43 Risk 2009 387 Ratio strength continued 10.
Slide 10: End-state Capital Structure
STRATEGIC End-state Our 17.4% 3.9% T2 T1 2% £9.2bn 2.4% AT1 1.5% Internal 2.0% 9% 11.1% 7% 4.5% 1Barclays Capital –Significant Successful Primary 10 AT1 T2 Independent Expected 1.5% 5% |(Traditional) 5.0% Senior H1 target capital CoCos Tier £15.2bn 10.5% G-SIFI Equity CoCos 2.5% 17.0% Additional CET
Slide 11: Estimated Barclays CRD IV CET1 Ratio
STRATEGIC Estimated Barclays 30 Conversion Prudential Adjustments Goodwill EL Deferred Excess Debit Gains Non-significant Mitigation CRD Credit Securitisation Central Other Gross RWAs 1CET1 11Estimated |June >H1 impairment IV Valuation (0.2) 11.4 on impact Transitional1 Capital Ratio Valuation (CRD
Slide 12: Estimated CRD IV Capital Ratios
STRATEGIC Estimated CRD 12 | H1 IV,2013 models CRD Capital Fixed OVERVIEW IV and Ratios Capital Income waivers areand CAPITAL Investor based RWAs on/subject Presentation & – notes LEVERAGE to the | 30following: July LIQUIDITY 2013 & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 13: Estimated RWAs
STRATEGIC Estimated RWAs It estimated for „Other institutions, 13 is|definition H1 assumed CRD 2013 RWA CRD Capital other IV Fixed that all of OVERVIEW increase IV impacts default Central corporates, counterparty Ratios Capital Income assume Clearing to from areRWAs and CAPITAL Investor based pensio
Slide 14: CRD IV leverage ratio
STRATEGIC CRD (2.5%) (0.0%) 2.8% 5.3% Dec-12 2.2% leverage We 1Additional 14Pre-restatement | will H1 IV 2.5% (0.3%) 2013 adj. continue /ratio PRA focus FL Fixed OVERVIEW ratio Leverage CRD on to published 3Income manage optimising & IVother Dec-12 ratios CAPITAL Investor on our CRD 16 the balance F
Slide 15: Liquidity & Funding
STRATEGIC Liquidity 15 | H1 2013 & Funding Fixed OVERVIEW Income CAPITAL Investor Presentation & LEVERAGE | 30 July LIQUIDITY 2013 & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 16: Balance sheet funding
STRATEGIC Balance While (£bn) Reverse Derivative Liquidity Other Trading The 21are Includes 16As Figures |largely H1 majority atunencumbered the 30 2013 portfolio sheet repurchase collateral pool on balance June financial matched this Fixed of OVERVIEW wholesale 138 2013, the slide assets sheet swap
Slide 17: Liquidity pool £138bn
STRATEGIC Liquidity £138bn surplus Barclays specific 30.06.2013 31.12.2012 £bn 18 138 127 12 20 34 46 43 81 11 FY 2013-2015 Right-size high Other 1G Cash 2Non 17 overnment c.45% In Government 71 11 36 47 105 |85 2008 H1 154 19 2011, cash quality & 110-130 Available 40 c. 96 against 2013 liquidity De
Slide 18: Diverse Funding Sources
STRATEGIC Diverse Funding 138% £bn 110% 118% 124% 462 FY 2011-2015 14% 18% 7% 20% 53% Dec Customer Total 2013-2015 –Group Improved 18Substitution Optimisation Refinancing Replacement | 2008 4% H1 470 2012 16% c.35-40% 58% funding 102% 130% Loan LDR 7% 2013 funding 460 FY Jun risk deposits c.60-65% t
Slide 19: Wholesale funding profile
STRATEGIC Wholesale Despite 2013 –Total £7bn 2013-2015 Reduction 14%) Continued Diverse Deposits 12% 2% 26% 2O USD As 1By 14% >6 41% > 7% 11% 2Including 19As ther £93bn £30bn month 1|mths at Product Currency remaining year 14% Covered H1 > defined 18% Subordinated >1 Diverse of EUR wholesale 3022013
Slide 20: Asset Quality
STRATEGIC Asset 20 | H1Quality 2013 Fixed OVERVIEW Income CAPITAL Investor Presentation & LEVERAGE | 30 July LIQUIDITY 2013 & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 21: Strong asset quality
STRATEGIC Strong Despite 156 2.8% 3.2% 4.4% 5.1% 4.8% 39.0%1 49.7% 48.9% 47.9% 53.8% 51.6% 118 77 70 63 FY H1 Continuous Barclays CRLs CRL 1Loan 211|bps 2013 2009 20101 2011 2012 FY H1 bps Coverage balances coverage Loss % consist asset 10 2013 aof conservative challenging CRLs Rate Gross reduction
Slide 22: Impairments Reduction
STRATEGIC Impairments Reduction Loan Q3 Q4 Q1 Q2 Investment 15 Impairment 13 Africa 122 146 148 202 204 186 £35m 17 16 W&IM 43 £128m Corporate 76 74 127 125 124 117 £195m (5) UK 21 19 26 27 25 £313m 294 295 Barclaycard 302 309 339 340 £94m Europe 51 64 61 1£89m £925m 56 Group 70 66 67 63 £72m Stable
Slide 23: Reduced Eurozone periphery exposures
STRATEGIC Reduced Barclays 22.3 23.5 26.5 22.0 22.7 25.3 7.9 4.9 9.9 Italy Spain Exposures £bn FY FY2011 2.7 5.4 7.1 5.6 5.7 6.0 9.0 9.2 12.5 33.3 32.5 34.3 6.3 6.2 £56.9bn £59.0bn 7.5 £67.5bn H1 Financial Sovereign Corporate Other Active 1–1.2bn 23Spain; Portugal: Italy: Redenomination |2013 2012 H
Slide 24: Barclays Non-Core run-down
STRATEGIC Barclays 53With Targeted 25 11 34 68 14 12 15 in 36 Dec Jun Derivatives Legacy Target reduction efficiencies CRD Portfolio Pre Corporate As We Between 1In 24 4£10bn IB H1 |atarget CRD-IV 13 H1 12 result apositions IV 2013, Dec good 2013 of RWAs 2008 Exit assets 1aEurope monoline of the 15
Slide 25: Credit ratings
STRATEGIC Credit 25 | H1ratings 2013 Fixed OVERVIEW Income CAPITAL Investor Presentation & LEVERAGE | 30 July LIQUIDITY 2013 & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 26: Credit ratings
STRATEGIC Rating 1Despite 31 Standard A+ Stand-Alone A-1 Moody bbb+ a- Aa3 A2 Bank cP-1 Fitch (BFSR) A Visibility F1 aD Long Short AA R-1 (Negative) –(Stable) Current Opposite Barclays affirmed 26(Stable) BRS Jan Global Credit (Stable) |Jul (Negative) (Stable) High H1 High (Negative) 2012 Term Finan
Slide 27: Potential Credit Rating Downgrade Impact
STRATEGIC Credit Provision Potential Barclays The agencies1 Contractual Total Two-notch One-notch Securitisation £bn 79C 6D L — 1T 1These 17 14 27 otal iquidity ontingent erivatives | H1 below S&P cumulative rating numbers 2013 prudently reserves outflows downgrade facilities oftable liabilities mar
Slide 28: Business Summary
STRATEGIC Business Summary A Solid 10.5% Capital Making regulation Acceleration material Leverage Rights CET1 Diversified Liquidity currencies Sound Coverage Strengthening Proactive Regulation 28 reform major | H1 capital ratios liquidity by issue 2013 good global impact Model & and Ratio December a
Slide 29: Appendix
STRATEGIC 29 Appendix | H1 2013 Fixed OVERVIEW Income CAPITAL Investor Presentation & LEVERAGE | 30 July LIQUIDITY 2013 & FUNDING ASSET QUALITY CREDIT RATING APPENDIX
Slide 30: Resilient Performance
PERFORMANCE Resilient Q1-10 Q4-09 Q3-09 Q2-09 Q1-09 501 1,395 1,310 1,471 1,273 1,141 1,256 1,090 1,805 1,786 1,865 1,944 1,694 1,977 1,822 1,754 1,569 2,395 6,213 6,867 7,002 7,001 7,337 7,734 7,384 7,549 7,750 7,238 7,563 7,287 7,445 7,440 8,108 8,081 8,167 8,771 £m Q4-10 Q3-10 Q3-11 Q2-11 Q2-13 Q
Slide 31: Net Interest Income
Net Six 2012 2013 (£m) Customer 3,320 3,506 1,571 1,599 Product 4,891 5,105 Equity 487 433 (24) (59) Other 154 149 Total 617 523 Wealth 5,508 5,628 Investment Head 364 86 Group 257 1(137) 6,129 5,577 31Includes | months interest H1customer non-customer RBB, Office net structural and 2013 structural
Slide 32: Net interest income margins and volumes
interest Wealth Corporate Barclay- Africa Europe UK Total and Banking card RBB Total1 income1 5,628 1.77 1.08 1.23 8.36 3.11 0.81 327,129 22,145 67,168 35,984 28,925 40,129 £132,778 5,105 1.60 0.94 1.14 8.61 2.94 0.45 Six (£m) 314,695 58,436 95,875 3,226 18,722 14,124 124,312 Net Of 5,508 1.86 1.25
Slide 33: Adjusting items
PERFORMANCE Adjusting Six Change 2012 2013 Statutory (£m)(%) (£m) Own 871 1,6771 Gain 2,945 (86) (227) — Provision 300 1,350 Adjusted 450 1650 4,339(17) 3,5911 33Includes | months H1 on credit 2013 disposal profit for items costs (gain)/charge ended Fixed PPI interest before toof redress –June profi
Slide 34: Adjusted profit before tax by cluster
PERFORMANCE Adjusted Six Change 2012 2013 UK (%) (£m) E 592 632 Africa (148) 3I(709) 751 775 Barclaycard 16 183 212 7C 2,242 2,389 Wealth 29 311 402 Head (53) 99 147 (17) 4,339 3,591 Group 309 (157) 34 nvestment urope orporate Includes | months RBB H1 Office RBB and RBB 2013 profit Banking costs Ban
Slide 35: Impact of Transform costs
PERFORMANCE Impact Six Return Costs Profit Adjusted Cost:Income excluding ratio average tax achieve UK (%) (£m) equity Transform Europe 63 12.7 659 (27) Africa 120 (25.6) (353) (356) Investment 41 19.5 780 (5) Barclaycard 68 3.6 221 (9) Corporate 58 16.5 2,558 (169) Wealth 55 7.8 443 (41) Head 87 4.
Slide 36: Transform Operating Expenses
PERFORMANCE Transform Over Adjusted (£bn) Cost Operating 36 Target Estimate 2015 2014 2013 2012 16.8 17.5 0.5 4% 17.3 1.0 5% 18.5 1.2 19.7| H1 to theachieve 2013 next operating expenses – costs Fixed 3 years, update CAPITAL expenses Income resultsInvestor will ASSETbe Presentation affected QUALITY b
Slide 37: Adjusted RoE
PERFORMANCE Adjusted RoE (%) H1 UK 7.8% Group 10.6% Europe (10.9%) 12.2% Africa (49.1%) Investment 13.4% 19.3% Barclaycard 20.1% 3.0% Corporate 3.8% 15.4% Wealth 7.3% 17.1% 2.5% 37Includes |2013 2012 RBB H1 improvements RBB and RBB 2013 RoE Return Banking effect Bank Investment Fixed 1 on ofCAPITAL
Slide 38: Movements in Revised Leverage Exposure
PERFORMANCE Movements Revised FY H1 IV (£bn) Pillar revised Derivative estimate1 refinements RA movements Reverse 403 (66) 469 Loans lending 223 46 177 Total 907 65 842 844 Derivatives 1,533 45 1,488 1,490 Potential (324) 66 — (390) SFT 308 21 287 126 161 Undrawn (130) (72) (58) (53) 8(5) 3179 6(Reg
Slide 39: Notes on leverage exposure
PERFORMANCE Notes Derivatives requirements Potential underlying these expected Securities FCCM Identified Undrawn commitments. For 39 | Barclays, H1 are on is 2013 floored through Future exposure calculated Commitments: low Financing risk netting Fixed set this risk The category Exposure out atimpro
Slide 40: Risk weighted assets by business
RWAs ASSET LIQUIDITY Risk REGULATION As (Łm) UK Europe Africa Barclaycard Investment Corporate Wealth Head Total 40 PERFORMANCE |atRBB H1weighted RWAs (Łm) 30 Office RBB by and RBB 2013 QUALITY Jun 43,609 Business Banking Bank Investment 25,492 38,801 387,230 and 13 & 16,733 Fixed assets FUNDING 31
Slide 41: Eurozone periphery exposure
Stable 1Default;Fixed As Residential 8,966 1,144 1,357 1,489 4,976 Corporate 2,673 26 388 1,967 292 Sovereign Ireland Portugal Italy (£m) Spain Financial 33,283 108 3,595 16,034 13,546 Other 5,639 4,194 30 390 1,028 Total 56,906 5,586 7,090 21,952 22,278 Total1 6,342 114 1,720 2,072 2,436 41 59,016
Slide 42: Spanish exposures
Spanish Gross Retail Average 0.7% Corporate £3.1bn Madrid Sovereign Local Redenomination 1€1.8bn 42Greater | H1 of net mortgage net during 2013 coverage home exposures balance than funding Barcelona holdings lending Fixed H1 loans 90exposure weighted of days 2013 surplus to Income of 61%. greater c.
Slide 43: Portuguese exposures
PERFORMANCE Portuguese Retail Average £1.1bn Corporate This Porto Sovereign Redenomination Lisbon Local 1€4.4bn 43Greater | H1 includes net Gross net during 2013 balance than funding holdings lending exposures mortgage Fixed £0.3bn H1 90c.40% weighted days 2013 mismatch CAPITAL to Income ofnet corpo
Slide 44: Italian exposures
PERFORMANCE Italian Retail Average 1.0% Milan £1bn Corporate Sovereign Redenomination Rome Local 1€13.6bn 44Greater | H1 net of net Gross c.10% exposures 2013 home during valuation lending than funding holdings mortgage Fixed loans 90 H1 c.19% to days mismatch weighted CAPITAL 2013 Income corporates
Slide 45: Liquidity pool
PERFORMANCE Liquidity pool reference Under PRAs Funding –Barclays Retail funded Avoid a Barclays-specific Optimise Minimise atIndividual and normal Group through over structure has maintains to &Business risk framework the cost the funding developed reliance framework level market use wholesale liqu
Slide 46: Wholesale funding composition
45month 1Wholesale As months (£bn) Deposits Certificates commercial Asset —— benchmark) Senior placement) Covered Subordinated Other Total Of 46 ASSET CAPITAL PERFORMANCE LIQUIDITY REGULATION |which atH1 30.3 as 30 (Łbn) backed 4.1 unsecured 2013 months QUALITY at >1 June bonds from secured unsecure
Slide 47: Term funding projections
– Projections Commitment Reduced –Higher –Run –Pre-funding 2015 2014 2013 2012 Unsecured Secured Term c.£27bn £6-8bn1 1£8-10bn1 47 PERFORMANCE Higher Run Pre-funding || Barclays Maturities Issuances funding down down term than funding than term of ofexpected based of to funding H1 plans1 maturities
Slide 48: Unsecured MTN programme
Unsecured MTN Senior 56% £78.9bn Subordinated decreasing similar Barclays’ Barclays 5-yr Source: 48 ASSET CAPITAL PERFORMANCE LIQUIDITY REGULATION | H1 iTraxx ofprogramme amount, MTNs 2013 QUALITY Barclays issenior 4.0% At medium-term asenior committed SovX & major Fixed liabilities 30 mature due FU
Slide 49: Secured funding programmes
High-quality Secured Barclays 4% Scheme Covered First Total: Prudent Public 13 2.4 6.0 3.5 144a/Reg 1.8 0.1 €/£/$/CHF UK Additional 49 ASSET CAPITAL PERFORMANCE LIQUIDITY REGULATION |(£bn) 6.0 3.7 1.8 0.3 Mortgages Covered Cards H1 securitisation £38.1bn secured 2013 QUALITY customer (FLS). funding
Slide 50: Contingent Capital Notes build
Contingent Barclays Build 0.5% Support Key Terms Subordinated Permanent 100% US$4.0bn Pricing US$3.0bn > 2012 7.750% April (ms+683bp) Combined c. US 1c.15% 50 PERFORMANCE Pre US$17bn 5% | Europe H1 features US$1.0bn of the 2013 abenefit ofMaturity 2% 2013 raised Tier development sees downgrade the o
Slide 51: Credit default swap spreads vs peers
Barclays 272 94 HSBC JP 5-year iTraxx, 1Barclays, 51 ASSET CAPITAL PERFORMANCE LIQUIDITY REGULATION Exact of |102 H1 231 Macquarie USD CDS UBS 105 5-yr 2013 maturities QUALITY 242 funding 5-yr 87 vs. EUR Z-spread Bank 245 &Fixed EUR FUNDING iTraxx Credit 195 cost senior Sachs ofIncome senior bonds 1
Slide 52: UK regulatory reform timeline
UK Proactively Regulatory Sep Publication report Retail Objective: Ring-fenced would fenced Transitioning ICB Strengthening 1Barclays FSA accountability offence 52 recommendations. ASSET CAPITAL PERFORMANCE LIQUIDITY REGULATION Independent | banking H1 2011: recommends proposals Banking final ring-f
Slide 53: Basel III regulatory capital and liquidity timeline
ASSET CAPITAL PERFORMANCE REGULATION LIQUIDITY Basel Regulatory Initial H1 Phased-in Capital Requirements Net Observation 60% Liquidity compliance Ratio Intraday monitoring monthly Introduction FSA/PRA’s 4Individual Guidance Main Capital: 2.5% CRD NSFR: 321LCR: 53 As Jan ILG CRD |2010 Stable H1 per
Slide 54: Debt investor relations contact information
Debt Richard Website: 54 | H1 investor 2013 Caven group.barclays.com/about-barclays/investor-relations#debt-investors Fixed relations Oihana Income Bessonart contact Investor information Sofia Presentation Lonnqvist| +44 30 July (0)20 2013 7116 2809 +44 (0)20 7116 6327 +44 (0)20 7116 5716 richard.ca
Slide 55: Important Notice
Legal Important The instruments Information distribution and/or This jurisdictions. an any Notice September prospectus) statement, issue. available, 55 barclaysprospectus@broadridge.com. invitation | securities H1 information, document You disclaimers any to 2013 US the notice as may related 2013. (
Slide 56: Forward-looking Statements
Legal Forward-looking This with looking “target,” banking expenditures, By business changes (including, the transactions capital Group’s and Any connection Stock any Barclays Nothing historical 56 |their further application other change H1 forward-looking document respect disclaimers Exchange and 20
Slide 57: Certain non-IFRS measures
Legal Certain This in IV. taking FSA‘s provisions technical UK includes which calculated Group “Movements Capital CRD With loaded leverage 57 light |These implementation H1 document respect IV disclaimers is into under statement CRD of and 2013 non-IFRS the risk CET1 leverage calculated ratio standa
Slide 58: Certain non-IFRS measures (continued)
Legal Certain This provide more the consider relevant quantitative provision products excluded BlackRock, income per which Adjusted tangible 58 |way share, H1 document detail disclaimers represents 2013 non-IFRS net valuable in IFRS shareholders the redress); from profit/(loss) attributable income o
Slide 59: Certain non-IFRS measures (continued)
Legal Certain profit Adjusted counterparty intangible provides shareholders 59 | H1after disclaimers 2013 non-IFRS useful return gross assets. taxnetting equity. Fixed divided leverage information onThis measures average Income where measure byisaverage athe risk Investor to (continued) non-IFRS rea