Barclays Plc · LSE:BARC
Barclays — Goldman Sachs European Financials Conference 2015
16 slides from Barclays's conference presentation, June 2015
Slide 1: Barclays PLC – Goldman Sachs European Financials Conference
Barclays PLC Goldman Sachs European Financials Conference June 2015
Slide 2: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director
Slide 3: 2014 Strategic Update: Repositioning and simplifying
2014 Strategic Update: Repositioning and simplifying Generating higher and more sustainable returns Dedicated Non-Core unit and a new Personal & Corporate Banking business Reshaping the Investment Bank Allocating capital to growth businesses Delivering a structurally lower cost base 3 | Goldman Sach
Slide 4: Progress on reallocating capital across the Group
<15% Progress on reallocating capital across the Group FY13 pre-resegmentation (£bn) FY13 post-resegmentation (£bn) Q115 position (£bn) FY16 guidance (£bn) Leverage exposure £1.4tn £1.4tn £1.2tn c.£1.1tn1 RWAs £442bn £442bn £396bn c.£400bn BNC 25% 41% BNC 110 16% Investment 65 BNC c.45 Bank 222 50%
Slide 5: Five measures that the strategy is on track
Five measures that the strategy is on track 1 Increased profits for the Group and double digit Core returns 2 Substantial shrinkage of Non-Core 3 Progress towards capital and leverage targets 4 Implementation of cost programmes progressing well 5 Progress on litigation and conduct issues 5 | Goldman
Slide 6: Since we announced the new strategy last year…
Since we announced the new strategy last year… Quarterly adjusted PBT has increased year over year… Quarterly adjusted costs have reduced year over year… £bn £bn 16% 9% 7% 15% 1% 7% 1% >100% 1.7 1.8 5.21 1.5 1.7 1.6 1.4 4.5 4.4 4.4 4.3 4.41 4.4 0.2 0.6 4.1 Q2 13 Q2 14 Q3 13 Q3 14 Q4 13 Q4 14 Q1 14 Q
Slide 7: Core business performing well with positive jaws
Core business performing well with positive jaws Three months ended – March (£m) 2014 2015 % change Financial performance Income 6,277 6,420 2% • PBT up 14% at £2.1bn: Impairment (481) (448) 7% − PCB profits up 14% Total operating expenses (3,969) (3,885) 2% − Investment Bank profits up 37% – Costs
Slide 8: Double digit returns in the Core business on a higher equity base
Double digit returns in the Core business on a higher equity base, and improved IB returns Core RoE Core RoTE 2016 Target Q1 14 >12% 10.7% 10.9% 46.7 13.2% 13.2% 38.5 Q1 15 39.6 32.2 RoE Average allocated RoTE Average allocated equity (£bn) tangible equity (£bn) Core Businesses Returns Q1 14 Q1 15 2
Slide 9: Reduction of Non-Core on track
Reduction of Non-Core on track RWA reduction (£bn) Leverage exposure by type (£bn) Non-Core quarterly costs3 (£m) 41% 38% 110 382 48% 278 2 75 18 236 65 13 18 11 114 180 45 101 219 Europe 441 31 retail 419 Europe 31 retail businesses 329 321 businesses 107 99 16 15 9 8 39 23 Dec-13 Dec-14 Mar-15 201
Slide 10: Development of capital and leverage towards targets
Development of capital and leverage towards targets Fully Loaded CET1 ratio1 150bps • Continue to steadily accrete capital, and on course for 2016 11.8% and end-state targets Dividends c.40bps Significant conduct c.80bps • CET1 capital increased £1.4bn and litigation3 c12% since 2013 to £41.8bn >11%
Slide 11: Group adjusted operating expenses - delivery to date
Group adjusted operating expenses - delivery to date Quarterly progression1 (£m) Cost: income ratio 68% 67% 64% 5.3 5.2 7% 4.5 4.4 4.4 4.4 4.4 4.3 4.1 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 2014 progress – excluding CTA (£bn) 18.7 0.6 0.5 0.5 0.2 0.1 16.9 FY13 Investment PCB Non-Core
Slide 12: Group and Core cost targets
Group and Core cost targets Group cost guidance1 (£bn) Core cost target1 (£bn) 18.7 Original Guidance = £17.5bn Revised Guidance = £17bn c.16.3 16.9 16.4 Non-Core 15.1 Core <14.5 FY13 FY14 FY15 Target FY13 FY14 FY16 Target Costs to achieve £1.2bn £1.2bn c.£0.7bn2 Transform (CTA) 1 Excludes provision
Slide 13: Path to achieving Core cost target
Path to achieving Core cost target Restructuring and Rightsizing Industrialisation Innovation • Removing excess capacity as a result of • Automation, simplification and • Providing a digital client experience business model, organisational or portfolio rationalisation of processes and systems: − Tra
Slide 14: Evidence of execution in the first quarter
Evidence of execution in the first quarter Core business PBT up 14% YoY to £2.1bn, resulted in RoE of 11.6% ex CTA a Non-Core RWAs down £10bn to £65bn, releasing £1.3bn of equity a CET1 ratio increased 30bps to 10.6% and leverage ratio maintained at 3.7%, despite further conduct and litigation provi
Slide 15: Progress on meeting 2016 Transform targets
Progress on meeting 2016 Transform targets 2016 Target Q1 2015 Capital CRD IV FL CET1 ratio >11.0% 10.6% Group Leverage Leverage ratio >4.0% 3.7% Dividend Payout ratio 40-50% 1p1 Returns Adjusted RoE >12% 11.6%2 Barclays Core Cost Adjusted operating expenses <£14.5bn £3.8bn3 Barclays Non-Core Return
Slide 16: Legal Disclaimer
Legal Disclaimer Important Notice The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with
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