Barclays Plc · LSE:BARC
Barclays — Investor Day (December 2024)
23 slides from Barclays's investor day presentation, Dec 10, 2024
Slide 1: Private Bank & Wealth Management Business Deep Dive
Private Bank & Wealth Management Business Deep Dive: 10th December 2024
Slide 2: Introduction to Barclays Private Bank & Wealth Management
Introduction to Barclays Private Bank & Wealth Management Barclays Private Bank & Wealth Management Business deep dive 2 Barclays UK Consumer, Cards & Payments 2023: £29bn Client Assets and Liabilities (CAL)1 2023: £154bn CAL1 • UK Digital Investing • UK & International Private Banking • UK Wealth M
Slide 3: Existing strengths
Existing strengths Barclays Private Bank & Wealth Management Business deep dive 3 Established brand in the UK and Full service private bank Competitive investment offering Internationally Proven top quartile performance track record, outperforming peers Leading market presence Investments 15% in the
Slide 4: Growth across client assets and liabilities since 2021
Growth across client assets and liabilities since 2021 Barclays Private Bank & Wealth Management Business deep dive 4 Client assets and liabilities (£bn) +25% 202 vs. 2021 183 Assets under 167 • Held under custody and execution only 161 65 +20% supervision balances 60 (AUS) • Lower margin Deposits 5
Slide 5: Net interest income growth driving RoTE expansion in recent years
Net interest income growth driving RoTE expansion in recent years Barclays Private Bank & Wealth Management Business deep dive 5 Income by type (£m) 29 31 30 14 vs. 2021 RoTE (%) Non-interest income • Recurring fee income 495 +8% • Capital light and less rate dependent 471 Non-interest 407 457 incom
Slide 6: Today’s financials
Today’s financials Barclays Private Bank & Wealth Management Business deep dive 6 Financials 2021 2022 2023 Q324 YTD RoTE 29% 31% 30% 14% Income (£bn) 1.0 1.2 1.3 1.0 Cost: income ratio 86% 69% 69% 69% Client assets 202 and liabilities (£bn) 161 167 183 Note: All figures on a pro-forma basis to refl
Slide 7: Opportunity to deliver more for clients in the UK
Opportunity to deliver more for clients in the UK Barclays Private Bank & Wealth Management Business deep dive 7 £3.5tn market size (3.3% CAGR to 2028)1 Opportunity to drive client acquisitions from Barclays UK Digital Investing (£1+2) £1.5tn market size Customer shift towards passive products Afflu
Slide 8: Opportunity to deliver more for international clients
Opportunity to deliver more for international clients Barclays Private Bank & Wealth Management Business deep dive 8 £22.4tn target market size1 Opportunity within our existing footprint APAC £11.7tn market size Dublin Isle of Man 9.6% CAGR to 2028 UK Jersey / Guernsey Singapore - growing 9% p.a. Sw
Slide 9: Proactively addressing challenges
Proactively addressing challenges Barclays Private Bank & Wealth Management Business deep dive 9 UK International Limited digital experience Lack of full product Digital Investing Globally Need for lifetime proposition proposition Product gaps e.g. credit and alternatives Lack of scalable, digital p
Slide 10: Journey to Simpler, Better and More balanced
Journey to Simpler, Better and More balanced Barclays Private Bank and Wealth Management Business deep dive 10 Simpler Better More balanced New business structure Strengthen proposition Grow assets under across the UK continuum management Drive cost efficiencies to and International Private reinvest
Slide 11: Simpler: new business structure aligned to market opportunity
Simpler: new business structure aligned to market opportunity Barclays Private Bank & Wealth Management Business deep dive 11 PBWM UK1 PBWM International2 Serving clients across the UK wealth continuum Serving wealth corridors between UK, Europe, Middle East and Asia Digital Affluent Private Banking
Slide 12: Simpler: investing to deliver more for clients and drive higher income
Simpler: investing to deliver more for clients and drive higher income Barclays Private Bank & Wealth Management Business deep dive 12 Investing in the business Costs (£m) Technology investment spend1 Cost >75% income 86% 69% High 60s % ratio: 2021-22² 2024-26 Client advisor growth (FTE)3 820 886 c.
Slide 13: Better: improve our UK Digital Investing proposition and acquisition
Better: improve our UK Digital Investing proposition and acquisition Barclays Private Bank & Wealth Management Business deep dive 13 Designed for self-directed …recent actions showing progress… …further enhancements to come investors… 2024 actions • Optimised pricing • Simpler customer journeys Impr
Slide 14: Better: develop and launch our new Affluent proposition in 2025
Better: develop and launch our new Affluent proposition in 2025 Barclays Private Bank & Wealth Management Business deep dive 14 Designed for clients seeking advice... … with simple customer journeys … …and all products in one place • Financial planning for customers to • Scalable address advice gap
Slide 15: Better: enhancing our Private Bank in the UK and internationally
Better: enhancing our Private Bank in the UK and internationally Barclays Private Bank & Wealth Management Business deep dive 15 Proposition gaps to be addressed... …we have started on the journey… …with more to do Product capabilities • Enhance securities backed lending • Globally consistent credit
Slide 16: Better: enhancing Private Bank UK and international client experience
Better: enhancing Private Bank UK and international client experience Barclays Private Bank & Wealth Management Business deep dive 16 Improving the client experience… …we have started on the journey… …with more to do Client coverage coordinated • Higher digital payment limits and lower globally fees
Slide 17: More balanced: focus on assets under management
More balanced: focus on assets under management Barclays Private Bank & Wealth Management Business deep dive 17 Investments growth driven by AUS to date Initiatives to grow AUM and recurring revenue 1. Talent • c.50% increase in client advisor roles planned across 2024-26 122 £bn • Upskilling existi
Slide 18: More balanced: growing CAL while rebalancing income mix
More balanced: growing CAL while rebalancing income mix Barclays Private Bank & Wealth Management Business deep dive 18 Target to grow CAL at a double digit CAGR Target to deliver high-quality income growth CAL £bn Grow security backed lending 61% NII 39% FY23 non-NII Maintain strong Double deposit
Slide 19: Today’s financials and 2026 targets
Today’s financials and 2026 targets Barclays Private Bank & Wealth Management Business deep dive 19 PBWM initiatives Financials1 2023 Q324 2026 Targets YTD New business structure RoTE 31% 30% >25% Deliver high- Drive cost efficiencies to Income (£bn) 1.3 1.0 quality growth across broad reinvest sour
Slide 20: Q&A
Q&A
Slide 21: Financial reconciliation
Financial reconciliation Barclays Private Bank & Wealth Management Business deep dive 21 Adjusting for the UK Wealth transfer as if it occurred on 1st Jan 2021 2021 2022 2023 Pro-forma Pro-forma Pro-forma Reported Adjustment1 Reported Adjustment1 Reported Adjustment1 (incl. Wealth) (incl. Wealth) (i
Slide 22: Glossary
Glossary Barclays Private Bank & Wealth Management Business deep dive 22 Abbreviation Term Definition AUM Assets under management Assets held under mandates, Barclays funds or under our advice AUS Assets under supervision Assets held under custody, including Digital Investing Refers to customer depo
Slide 23: Disclaimer
Disclaimer Barclays Private Bank & Wealth Management Business deep dive 23 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