Barclays Plc · LSE:BARC
Barclays — Investor Day (June 2024)
22 slides from Barclays's investor day presentation, Jun 18, 2024
Slide 1: Barclays UK Corporate Bank Business deep dive
Barclays UK Corporate Bank Business deep dive: 18th June 2024
Slide 2: Introduction to Barclays UK Corporate Bank
Introduction to Barclays UK Corporate Bank Barclays UK Corporate Bank Business deep dive 2 Corporate and Investment Bank Consumer, Cards & Payments £12.6bn1 £5.3bn1 Barclays Investment Bank Barclays UK Corporate Bank £1.8bn1 Global Markets Investment Banking • Corporate Lending • Transaction Banking
Slide 3: Barclays UK Corporate Bank today
Barclays UK Corporate Bank today Barclays UK Corporate Bank Business deep dive 3 Long-established scale player Barclays Barclays Investment Bank Barclays UK UK Corporate Bank International Corporate delivering high returns Business Banking (c.13k clients) Bank <£6.5m £6.5m annual turnover- FTSE350,
Slide 4: Today's financials
Today’s financials Barclays UK Corporate Bank Business deep dive 4 Financials 2021 2022 2023 Q124 RoTE 14% 19% 20% 15%1 Income (£bn) 1.3 1.7 1.8 0.4 Cost: income ratio 59% 49% 52% 58%1 23bps LLR Credit impairment 137 0 27 (charges) /releases (£m) (15) Loans (£bn) 27 27 26 26 Deposits (£bn) 85 84 85
Slide 5: Comprehensive client proposition, which delivers diverse income
Comprehensive client proposition, which delivers diverse income Barclays UK Corporate Bank Business deep dive 5 Diverse income streams across products • Term debt / RCFs1 +32% Corporate lending • Overdrafts (Predominantly NII) 1,770 • Risk protection 1,657 Transaction Banking 262 • Trade and Working
Slide 6: High-quality income growth across broad sources
High-quality income growth across broad sources Barclays UK Corporate Bank Business deep dive 6 Income by type (£m) +32% 1,770 v. 2021 1,657 Non-interest income 1,341 610 +51% • Capital light and less rate dependent 525 Non-interest 405 income Net interest income • Strong deposit franchise • Higher
Slide 7: Strong deposit foundation underpinned by deep relationships
Strong deposit foundation underpinned by deep relationships Barclays UK Corporate Bank Business deep dive 7 Franchise deposit base (£bn) Market share1 22% 21% 22% 22% Total 85 84 85 82 Interest-bearing • Market position underpinned by strong and currency 64 client relationships 66 accounts 73 70 • N
Slide 8: Opportunity to deliver more to clients and shareholders: client experience
Opportunity to deliver more to clients and shareholders Barclays UK Corporate Bank Business deep dive 8 Deepen relationships by enhancing client experience Clients who rate overall satisfaction as very good or excellent (%)1 Service quality 53 57 57 69 Peer #1 Barclays UKCB Peer #2 Peer #3 Digital 4
Slide 9: Opportunity to deliver more to clients and shareholders: grow lending
Opportunity to deliver more to clients and shareholders Barclays UK Corporate Bank Business deep dive 9 Grow lending Lending 4th c.35% experience lowest ranked peer on availability of finance1 of existing corporate clients borrow from us Loan: deposit ratio 54 68 72 at FY23 (%) 31 Barclays UKCB Peer
Slide 10: Journey to Simpler, Better and More balanced
Journey to Simpler, Better and More balanced Barclays UK Corporate Bank Business deep dive 10 Simpler Better More balanced Drive productivity and Grow broad-based Grow share of lending, seamless digital delivery income through deeper and attract new clients client relationships
Slide 11: Simpler: investing to deliver more for clients and drive higher income
Simpler: investing to deliver more for clients and drive higher income Barclays UK Corporate Bank Business deep dive 11 Costs (£m) Significant increase in investments 2024-26 Cost: P&L spend income 59% 52% High 40s % ratio: c.(100) +>50% 912 787 2021 2023 Efficiency Inflation Investments Business 20
Slide 12: Simpler: investing to deliver a simpler client experience
Simpler: investing to deliver a simpler client experience Barclays UK Corporate Bank Business deep dive 12 Today 2026 Target Client online access channels 5 1 iPortal will be our online standardised channel Self-servicing interactions 30% >60% More client interactions completed without direct suppor
Slide 13: Better: enhancing Transaction Banking capabilities further
Better: enhancing Transaction Banking capabilities further Barclays UK Corporate Bank Business deep dive 13 New propositions make it easier for our clients to do business Trade360 Enhanced cash management • Full-visibility of trade transactions • Virtual Account Management offering Deliver to more •
Slide 14: Better: grow broad-based income through deeper client relationships
Better: grow broad-based income through deeper client relationships Barclays UK Corporate Bank Business deep dive 14 Significant opportunity from deeper relationships Track record of delivering for existing clients Illustrative income per client c.10x +2% Increase in proportion of clients (2021: 9%)
Slide 15: More balanced: strategic pivot to grow share of lending
More balanced: strategic pivot to grow share of lending Barclays UK Corporate Bank Business deep dive 15 UK Corporate Bank today UK Corporate Bank tomorrow Divergence in market share reflects: Now allocating capital and investing in the business: Market share (2023)1 1 Capital allocation Pricing • R
Slide 16: More balanced: strategic pivot to grow share of lending
More balanced: strategic pivot to grow share of lending Barclays UK Corporate Bank Business deep dive 16 Market opportunity identified Loans1 (£bn) Growth opportunity c.0.8 +1% CAGR 2023-26 assumed 26.4 2023 Market demand Corporate Lending Trade & Working Capital 2026 £20.9bn Lending growth driving
Slide 17: More balanced: will maintain economic and risk discipline as we grow
More balanced: will maintain economic and risk discipline as we grow Barclays UK Corporate Bank Business deep dive 17 Limited concentration to individual sectors Significant risk transfers Health Technology, Media & Telecoms Impairment reduction Industrials Real estate c.40% and capital relief • c.7
Slide 18: Client case study
Client case study Barclays UK Corporate Bank Business deep dive 18
Slide 19: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays UK Corporate Bank Business deep dive 19 Financials 2021 2022 2023 Q124 2026 Targets RoTE 14% 19% 20% 15%1 High teens % 1.8 0.4 Deliver high-quality growth Income (£bn) 1.3 1.7 across broad sources Cost: income ratio 59% 49% 52% 58%1 High 40s % Credit impa
Slide 20: Q&A
Q&A
Slide 21: Plan macroeconomic assumptions
Plan macroeconomic assumptions Barclays UK Corporate Bank Business deep dive 21 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% Plan (unchanged from 20th UK bank rate3 5.25% 4.00% 3.25% 3.25% February) Sterling 5-year swap rate4 3.36% 3.58% 3.49% 3.49
Slide 22: Disclaimer
Disclaimer Barclays UK Corporate Bank Business deep dive 22 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