Barclays Plc · LSE:BARC
Barclays — FY2019 Earnings Presentation
79 slides from Barclays's earnings presentation, Feb 13, 2020
Slide 1: Barclays PLC Equity Investor Presentation
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Barclays PLC Equity Investor Presentation 2019 Full Year Results 13 February 2020 1 | Barclays 2019 Full Year Results | 13 February 2020
Slide 2: Strategy, targets & guidance
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Strategy, targets & guidance 2 | Barclays 2019 Full Year Results | 13 February 2020
Slide 3: Continuing to deliver
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Continuing to deliver FY19 Financial highlights 9.0% RoTE1 Delivered improved Group RoTE of 9.0%, in line with target +50bps £21.6bn Income Cost discip
Slide 4: Increased RoTE and cash returns to shareholders
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Increased RoTE and cash returns to shareholders Improved RoTE year-on-year Ordinary dividend tripled 9.0%2 9.0p 8.5%2 6.5p 5.6%1,2 4.4%1 3.0p 3.0p 2016
Slide 5: Three consecutive years of Group returns progression
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Three consecutive years of Group returns progression RoTE1 Improved returns year-on-year for 20172 2018 2019 the last three years Group3 8.5% 9.0% 5.6%
Slide 6: Diversification is a key strength of Barclays
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Diversification is a key strength of Barclays 47% Consumer Banking Diversified by customer and client, 27% & Payments 35% product, geography and curren
Slide 7: Continued efficiencies driving positive operating leverage
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Continued efficiencies driving positive operating leverage Delivered 2019 cost guidance and continue to target <60% cost: income ratio over time Absolu
Slide 8: Creating capacity through transforming the way we operate
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Creating capacity through transforming the way we operate c.£550m Examples of BX generated Capacity drivers savings in 2019 productivity savings Techno
Slide 9: Investing in less capital intensive, technology-led, annuity businesses
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Investing in less capital intensive, technology-led, annuity businesses Growth businesses that have the potential to differentiate Barclays over the ne
Slide 10: Payments: unique footprint with non-capital intensive growth potential
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Payments Unique footprint with significant non-capital intensive growth potential • Develop further commercial opportunities as the only bank-owned mer
Slide 11: Focusing on non-capital intensive, annuity income growth
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Transaction Banking Focusing on non-capital intensive, annuity income growth • Within Corporate Banking, rebalancing income mix, building on annuity, f
Slide 12: Creating a leading integrated platform for banking, advice and investments
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Advice & Investments Creating a leading integrated platform for banking, advice and investments • Significant opportunity to increase scale and market
Slide 13: Continued delivery of financial targets
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Continued delivery of financial targets Delivering attractive capital returns to shareholders remains a key priority whilst also continuing to improve
Slide 14: Group
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Group 14 | Barclays 2019 Full Year Results | 13 February 2020
Slide 15: FY19 Group highlights
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE FY19 Group highlights Delivered on FY19 Group RoTE target and cost guidance, while increasing capital distribution to shareholders • Income increased 2
Slide 16: Q419 Group highlights
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Group highlights Improved income with continued positive operating leverage Financial performance1 • Income increased 4% driven by improvement acr
Slide 17: FY19 Group
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE FY19 Group Year ended (£m) Dec-19 Dec-18 % change Excluding L&C – year ended (£m) Dec-19 Dec-18 % change Income 21,632 21,136 2% PBT 6,206 5,701 9% Imp
Slide 18: Q419 Group
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Group Three months ended (£m) Dec-19 Dec-18 % change Excluding L&C – three months ended (£m) Dec-19 Dec-18 % change Income 5,301 5,073 4% PBT 1,26
Slide 19: Other items of interest – FY19 and Q419 vs. prior year
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Other items of interest – FY19 and Q419 vs. prior year Material items (£m) FY19 FY18 Q419 Q418 Litigation and conduct DoJ RMBS - (1,420) - - Head Offic
Slide 20: Barclays UK
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Barclays UK 20 | Barclays 2019 Full Year Results | 13 February 2020
Slide 21: Q419 Barclays UK
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Barclays UK Strong RoTE of 18.7%, with positive cost: income jaws for both Q419 and FY19 • Income increased 5% YoY despite a challenging income Q4
Slide 22: Think digital, think Barclays UK
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Think digital, think Barclays UK Building meaningful relationships with our customers Front end digitisation Changing the shape of our business Deliver
Slide 23: FY19 Barclays UK
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE FY19 Barclays UK Year ended (£m) Dec-19 Dec-18 % change Excluding L&C – year ended (£m) Dec-19 Dec-18 % change – Personal Banking 4,009 4,006 PBT 2,604
Slide 24: Q419 Barclays UK
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Barclays UK Three months ended (£m) Dec-19 Dec-18 % change Excluding L&C – three months ended (£m) Dec-19 Dec-18 % change – Personal Banking 1,064
Slide 25: Barclays International
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Barclays International 25 | Barclays 2019 Full Year Results | 13 February 2020
Slide 26: Q419 Barclays International
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Barclays International Improved returns with focused investment in the business • Income grew 7% to £3.5bn reflecting improved Income balanced acr
Slide 27: FY19 Barclays International
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE FY19 Barclays International Year ended (£m) Dec-19 Dec-18 % change Excluding L&C – year ended (£m) Dec-19 Dec-18 % change – CIB 10,231 9,765 5% PBT 4,2
Slide 28: Q419 Barclays International
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Barclays International Three months ended (£m) Dec-19 Dec-18 % change Excluding L&C – three months ended (£m) Dec-19 Dec-18 % change – CIB 2,314 2
Slide 29: Corporate & Investment Bank
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Corporate & Investment Bank 29 | Barclays 2019 Full Year Results | 13 February 2020
Slide 30: Q419 Barclays International: Corporate & Investment Bank
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Barclays International: Corporate & Investment Bank Strong performance with improved RoTE and a disciplined approach to costs • Strong positive ja
Slide 31: Steady improvement in CIB returns with increased income, despite a lower industry wallet
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Steady improvement in CIB returns with increased income, despite a lower industry wallet 248 12 240 Industry 233 CIB RoTE improved by Wallet1 6%230 230
Slide 32: Market share gains and returns discipline across CIB
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Market share gains and returns discipline across CIB MARKETS: Consistent trend of share gains BANKING: Fee share growth to rank 6th CORPORATE: Focused
Slide 33: Improving share in the CIB
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Improving share in the CIB Gaining share in Markets and Banking Markets1 Banking fees2 2% 20bps 10bps 5% $159bn $156bn 4.4% 4.2% 4.1% 4.2% $81bn $77bn
Slide 34: Markets: Managing the business for improved returns
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Markets: Managing the business for improved returns • Continue to grow client financing balances to build a large and stable income base, which Leverag
Slide 35: FY19 and Q419 Barclays International: Corporate & Investment Bank
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE FY19 and Q419 Barclays International: Corporate & Investment Bank CIB business performance – CIB business performance – Dec-19 Dec-18 % change Dec-19 D
Slide 36: Consumer, Cards & Payments
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Consumer, Cards & Payments 36 | Barclays 2019 Full Year Results | 13 February 2020
Slide 37: Q419 Barclays International: Consumer, Cards & Payments
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 Barclays International: Consumer, Cards & Payments RoTE of 16.3% with steady growth in US co-branded cards balances • Income increased 6% with con
Slide 38: Consumer, Cards & Payments opportunities
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Consumer, Cards & Payments opportunities Portfolio of leading franchises with high returns and growth potential Cards & Payments #9 US credit card rece
Slide 39: FY19 and Q419 Barclays International: Consumer, Cards & Payments
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE FY19 and Q419 Barclays International: Consumer, Cards & Payments CC&P business performance – CC&P business performance – Dec-19 Dec-18 % change three m
Slide 40: Head Office
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Head Office 40 | Barclays 2019 Full Year Results | 13 February 2020
Slide 41: Head Office
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Head Office Q418 Q319 Q419 • Q419 negative income of £110m included: − c.£30m residual negative income impact from legacy capital instruments − Negativ
Slide 42: Head Office – FY19 and Q419
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Head Office – FY19 and Q419 Year ended (£m) Dec-19 Dec-18 Three months ended (£m) Dec-19 Dec-18 Income (396) (273) Income (110) (11) Impairment (charge
Slide 43: TNAV, capital & leverage
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE TNAV, capital & leverage 43 | Barclays 2019 Full Year Results | 13 February 2020
Slide 44: YoY TNAV movement
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE YoY TNAV movement TNAV (pence per share) • TNAV is stable at 262p year-on-year, as increases of: − 24p of profits after tax 2 − 2p of positive cash flo
Slide 45: Q419 TNAV movement
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 TNAV movement TNAV decreased by 12p primarily due to reserve movements TNAV (pence per share) • TNAV reduced by 12p to 262p, as 4p of profits afte
Slide 46: YoY CET1 ratio progression
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE YoY CET1 ratio progression CET1 ratio1 • CET1 ratio of 13.8% reflecting: − 63bps from the benefit of 76bps removing the operational 15bps risk RWA floo
Slide 47: Q419 CET1 ratio progression
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Q419 CET1 ratio progression CET1 ratio increased to 13.8% reflecting capital generation from profits and lower RWAs CET1 ratio1 • CET1 ratio of 13.8% r
Slide 48: CET1 ratio target remains c.13.5%
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE CET1 ratio target remains c.13.5% Provides adequate headroom above the CRD Maximum Distributable Amount (MDA) hurdle Illustrative evolution of minimum
Slide 49: Prudently managing the Group’s capital position
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Prudently managing the Group’s capital position Group’s CET1 managed to be prudently above the regulatory minimum and to pass stress tests Illustrative
Slide 50: Demonstrated ability to pass stress tests
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Demonstrated ability to pass stress tests Favourable drawdown in 2019 BoE stress test compared to major UK peers FY19 CET1 ratio 13.8% Barclays Bank A
Slide 51: 2019 pension triennial valuation
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE 2019 pension triennial valuation The latest triennial valuation of the UK Retirement Fund (UKRF) has been completed • As at 30 September 2019, the trie
Slide 52: Prudently managed leverage ratio
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Prudently managed leverage ratio A material portion of our leverage exposure is short term or liquid in nature Minimum leverage requirements and Proven
Slide 53: Managing evolving future Group minimum leverage requirements
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Managing evolving future Group minimum leverage requirements Minimum leverage requirements and buffers under the UK regime Q419 UK leverage ratios1: •
Slide 54: Capital structure well established
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Capital structure well established Expect to hold prudent headroom above AT1 and Tier 2 minimums Illustrative evolution of regulatory capital structure
Slide 55: Funding & liquidity
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Funding & liquidity 55 | Barclays 2019 Full Year Results | 13 February 2020
Slide 56: High quality funding position with a conservatively positioned liquidity pool and LDR
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE High quality funding position with a conservatively positioned liquidity pool and LDR Diversified funding profile with strong deposit base Well positio
Slide 57: Successfully transitioning to a HoldCo funding model
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Successfully transitioning to a HoldCo funding model Currently expect £7-8bn of MREL issuance in 2020 HoldCo MREL position and expected requirement Wel
Slide 58: Continued progress in HoldCo issuance
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Continued progress in HoldCo issuance Annual HoldCo issuance volume materially lower vs 2016-18 (£bn)1 2019 HoldCo issuance by currency3 AT1 Tier 2 Sen
Slide 59: Balanced HoldCo funding profile by debt class and tenor
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Balanced HoldCo funding profile by debt class and tenor Barclays PLC AT1 Tier 2 Senior unsecured 21% By product 15% £53bn 64% BPLC AT1 capital BPLC Tie
Slide 60: Managing the call and maturity profiles of BPLC and BBPLC capital instruments
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Managing the call and maturity profiles of BPLC and BBPLC capital instruments BPLC capital call and maturity profile (£bn) BPLC AT1 capital as at 31 De
Slide 61: High quality liquidity position
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE High quality liquidity position Prudently positioned liquidity pool, LDR and lower reliance on short-term wholesale funding Highly liquid, comfortably
Slide 62: Illustrative UK approach to resolution
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Illustrative UK approach to resolution1 OpCo waterfall Intercompany investments HoldCo waterfall • Total OpCo losses which exceed its equity • Losses a
Slide 63: Strong legal entity capital and liquidity positions
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Strong legal entity capital and liquidity positions Group expects to accommodate all legal entity capital requirements within Group CET1 ratio target o
Slide 64: Diversified Funding Sources across all legal entities
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Diversified Funding Sources across all legal entities1 Majority of funding within legal entities through deposits Barclays PLC 54 26 8% 4% 416 67 65% 1
Slide 65: Deposit and wholesale funding sources of Barclays Bank UK PLC and Barclays Bank PLC
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Deposit and wholesale funding sources of Barclays Bank UK PLC and Barclays Bank PLC Barclays PLC Barclays Bank UK PLC Barclays Bank PLC (and subsidiari
Slide 66: Wholesale funding composition as at 31 December 2019
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Wholesale funding composition as at 31 December 20191 <1 1-3 3-6 6-12 Total 1-2 2-3 3-4 4-5 As at 31 December 2019 (£bn) >5 years Total month months mo
Slide 67: Ratings remain a key priority
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Ratings remain a key priority Focus on strategy execution and performance targets to improve ratings Current Senior Long and We solicit ratings from Mo
Slide 68: Barclays rating composition for senior debt
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Barclays rating composition for senior debt Moody’s Standard & Poor’s Fitch BPLC BBPLC BBUKPLC BPLC BBPLC BBUKPLC BPLC BBPLC BBUKPLC Adj. Baseline Cred
Slide 69: Barclays rating composition for subordinated debt
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Barclays rating composition for subordinated debt Moody’s Standard & Poor’s Fitch Adj. Baseline Stand-alone Stand-Alone Viability Credit baa2 baa2 bbb+
Slide 70: ESG
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE ESG 70 | Barclays 2019 Full Year Results | 13 February 2020
Slide 71: Environmental, Social and Governance Highlights
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Environmental, Social and Governance Highlights Managing ESG factors to strengthen our franchise and deliver sustainable returns for all our stakeholde
Slide 72: Growing green and sustainable finance franchise
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Growing green and sustainable finance franchise Increased activity across business lines, geographies and client segments Increasing range of product s
Slide 73: ESG Highlights – Group Treasurer’s perspective
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE ESG Highlights – Group Treasurer’s perspective Managing ESG factors to strengthen our franchise and deliver sustainable returns for all our stakeholder
Slide 74: Appendix
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Appendix 74 | Barclays 2019 Full Year Results | 13 February 2020
Slide 75: Interest rate sensitivity
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Interest rate sensitivity Illustrative sensitivity of Group NII to a 25bps parallel upward and downward shift in interest rates1 Change in NII based on
Slide 76: Prudently managing credit risk in both the UK and US
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Prudently managing credit risk in both the UK and US Conservatively positioned in both the UK and US consumer credit markets FY18 H119 FY19 £136.5bn £1
Slide 77: Legal entity structure of the Group since April 2018
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Legal entity structure of the Group since April 2018 Barclays PLC Barclays International Barclays UK and Head Office1 Market leading UK retail bank, co
Slide 78: Abbreviations
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Abbreviations ABS Asset-backed Securities ECM Equity Capital Markets PPI Payment Protection Insurance ACS Annual Cyclical Scenario EPS Basic Earnings p
Slide 79: Disclaimer
STRATEGY, BARCLAYS BARCLAYS HEAD TNAV, CAPITAL FUNDING TARGETS GROUP CIB CC&P ESG APPENDIX UK INTERNATIONAL OFFICE & LEVERAGE & LIQUIDITY & GUIDANCE Disclaimer Important Notice The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions