Slide 1: Barclaycard March 2012
®)) barclaycard March 2012
Slide 2: Barclaycard makes a material contribution to Barclays
Barclaycard makes a material contribution to Barclays Barclays 2011 PBT (£m) RBB 2011 PBT by business (£m) £5,590 £3,302 UKRBB £1,420 43% RBB RBB 1,829 £1,208 37% £3,302 Barclaycard (30%) 59% Africa £908 27% ERBB (£234) -7% All PBT figures quoted throughout this presentation are on an adjusted basis
Slide 3: Barclaycard is a broad international payments business
Barclaycard is a broad international payments business . . . Barclaycard 2011 Income Business Payment £4,095m Products • Payment Acceptance • Commercial Payments 15% • Partner Sales Finance UK Consumer 49% Credit Cards International Consumer 36% Credit Cards • United States • Germany • South Africa
Slide 4: ...with diversified sources of income
. . . with diversified sources of income Income - by source Bank Channel Open Market 14% 49% 36% Business Partnerships 4
Slide 5: Traditional Retail Banks vs Integrated Payment Providers
Traditional Retail Banks Consumers Consumers Issuer Switch Acquirer Businesses Businesses Integrated Payment Providers Consumers Consumers Issuer Switch Acquirer Businesses Businesses 5
Slide 6: A Payments Market Leader…
A Payments Market Leader… vs. UK Bank Peers vs. Global Peers #1 Barclaycard UK peer A Global peers UK peer B #8 Barclaycard UK peer C UK peer D Global peers #10 Based on payment volume, excluding debit issuing. Barclaycard estimates 6
Slide 7: ...and we continue to grow
. . . and we continue to grow Gained Share in All Markets £219bn PAYMENTS 10% YoY £1.2bn PBT 53% YoY £30bn LOANS &ADVANCES 13% YoY 17% ROE +490bps YoY >200k BUSINESS 28% YoY 5m NEW +54% YoY PARTNERSHIPS ACCOUNTS All PBT figures quoted throughout this presentation are on an adjusted basis 7
Slide 8: Business growth is offsetting margin pressure
Business growth is offsetting margin pressure Income Margin (NIM) FY ’11 FY ’11 FY ’09 FY ’10 9.4% FY ’09 FY ’10 £4,095m 9.7% 9.8% £4,041m £4,024m 2009 2010 2011 2009 2010 2011 Period End Loans & Advances Payments Processed FY ’11 FY ’10 £30.1bn FY ’09 £26.6bn FY ’10 FY ’09 FY ’11 £26.5bn £200bn £18
Slide 9: Continued cost discipline is funding growth
Continued cost discipline is funding growth Cost Base (£m) Investment / Non Investment Costs Organic Investment Costs Inorganic 1,659 Non Investment Costs 1,570 89 Cost (exc Investment) / per account 1,524 CAGR 15% CAGR 2% 1,570 60 2009 2010 2011 2009 2010 2011 (indexed to 2009) 9
Slide 10: Our growth is underpinned by very strong risk management
Our growth is underpinned by very strong risk management 8% Barclaycard Impairment Rate BCUK 30 + day deliquency rate BCUS 30 + day deliquency rate 7% 6% 5% 4% 3% Q1 10 Q2 Q3 Q4 Q1 11 Q2 Q3 Q4 Delinquency rates exclude Egg Acquisition 10
Slide 11: We continue to deliver steady growth and high returns through the cycle
We continue to deliver steady growth and high returns through the cycle 1,208 (£m) 18% CAGR 791 17.4% 766 724 603 522 12.5% 11.9% 2006 2007 2008 2009 2010 2011 PBT RoE All PBT figures quoted throughout this presentation are on an adjusted basis 11
Slide 12: Pillars for Continued Growth
Pillars for Continued Growth LIVES MADE MUCH EASIER 1 Outpace 2 3 4 market growth in Accelerate Deliver Lead in consumer cards growth in in UK, Germany, step change payments Business- Scandinavia growth in US innovation related Payments & SA 12
Slide 13: Pillars for Continued Growth: Outpace market growth in consumer cards
Pillars for Continued Growth 1 Outpace market growth in consumer cards in UK, Germany, Scandinavia & SA • Cost management • Analytics • Great products, offers, service 13
Slide 14: Pillars for Continued Growth: Deliver step change growth in US
Pillars for Continued Growth 1 Outpace 2 market growth in Deliver consumer cards in UK, Germany, step change Scandinavia growth in US & SA • Deepen with existing partners, bring in new ones • Open market & mobile commerce niches • Cost management 14
Slide 15: Pillars for Continued Growth: Accelerate growth in business payments
Pillars for Continued Growth 1 Outpace 2 3 market growth in Accelerate Deliver consumer cards growth in in UK, Germany, step change Business- Scandinavia growth in US related Payments & SA • Grow product footprint • Expand distribution • Leverage the franchise - One Barclays • Sustain c.30% RoE 15
Slide 16: Pillars for Continued Growth: Lead in payments innovation
Pillars for Continued Growth 1 Outpace 2 3 4 market growth in Accelerate Deliver Lead in consumer cards growth in in UK, Germany, step change payments Business- Scandinavia growth in US innovation related Payments & SA • Continue to lead in contactless • Lead in mobile • Connect buyers and sellers 1
Slide 17: Pillars for Continued Growth: Mobile
Pillars for Continued Growth 1 Outpace 2 3 4 market growth in Accelerate Deliver Lead in consumer cards growth in in UK, Germany, step change payments Business- Scandinavia growth in US innovation related Payments & SA 1966 1984 Late 1990s 2007 Zip Zap Magstripe Chip & Pin Contactless Mobile 17
Slide 18: Legal disclaimers
Legal disclaimers 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 wit