Barclays Plc · LSE:BARC
Barclays — Lehman Brothers Financial Services Conference 2007
17 slides from Barclays's conference presentation, Sep 10, 2007
Slide 1: Lehman Brothers Financial Services Conference, New York
Filed by Barclays PLC Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14d-2 under the Securities Exchange Act of 1934 Subject Companies: Barclays PLC (Commission File No. 1-09246) Barclays Bank PLC (Commission File No. 1-10257) ABN AMRO Holding N.V. (Commissio
Slide 2: Overview: market conditions, current position and performance, future growth
• Three things I’m going to talk about – our view of what’s happening in the markets; – what our position is and how our performance has been – and what makes us confident that we’re well positioned for future growth despite the market turbulence • I’m going to start with the four market areas where
Slide 3: Instability in the sub prime markets
• Instability in the sub prime markets has been caused by: – extremes in issuance, – mispricing as a result of incorrect default assumptions, – and significant leverage, – exacerbated by broad distribution of the products around the globe. – it’s going to take considerable time to work through the e
Slide 4: Credit spread VaR and SIV Lites
– the vast majority of which is financing Equifirst origination • Today’s credit spread VaR, despite increased volatility, is below the average for 2006 – so we’re comfortable with our model, our positions and our ability to repackage and distribute risk in this market • SIV Lites have attracted a d
Slide 5: Leveraged Finance market rebalancing
• In Leveraged Finance – we’re seeing a healthy rebalancing of supply and demand between private equity and fixed income investors – resulting in stronger covenants, lower levels of leverage, better pricing of deals – underlying fundamentals of the corporate credit market remain strong – and we expe
Slide 6: Money markets: a liquidity issue rather than credit
• With the exception of sub prime, what’s happening in the money markets is not so much about credit as liquidity – 90-day CP is moving to one-week CP, – 30 day CP is moving to 1-day CP – and 6-month deposits are moving to 5-day deposits – we need more liquidity in the short end of the curve which i
Slide 7: Quantitative Active Investment Funds
• The fourth area I want to address is Quantitative Active Investment Funds • The challenges faced by some Quant Funds were related to the issues in sub-prime, leveraged finance and liquidity – investors holding falling sub-prime instruments and other credit products were forced to meet margin calls
Slide 8: Managing well in the four areas of turbulence
• So in the four areas of market turbulence we’re managing well – and we believe we’ll benefit in this environment – because when markets are turbulent there’s always a flight to quality – and an opportunity to capture market share from less well positioned competitors • In this context our strong b
Slide 9: Recent performance
• The results are born out in our recent performance • In line with other investment banks, we suffered pain in July and August – but notwithstanding the difficult market conditions our income in July was ahead of July 2006 – we were profitable in August – and year to date, profits are well ahead of
Slide 10: Universal banking strategy
• The first reason for that confidence is the strategy we set out with ten years ago when we founded Barclays Capital – which has never been more important than today – we set out then to create an integrated bank – because we believe the Universal Banking Model is the natural model for clients and
Slide 11: Commodities partnership and credit as an asset class
– this partnership will make us number 1 in the single most strategic market in the world for commodities • So we’re very excited about our relationship with CDB which represents a great opportunity for us Credit as an asset class • We also continue to see strong growth prospects for credit as an as
Slide 12: Underlying industry dynamics and market size
• Another reason to have confidence in our growth trajectory is the underlying industry dynamics – where we continue to see strong growth over the next 5 years • This slide shows the size of the markets for Investment Banking, Asset and Wealth Management in 2006 – they generated revenues of almost $
Slide 13: Europe and Asia growing fastest; cross-border flows
• What’s most interesting thing here is that Europe and Asia are the areas growing most quickly – developing a US presence is still key to our success – but it’s good to see the areas where Barclays has greatest strength - in both franchise and brand - have strongest growth • Cross border flows are
Slide 14: Track record through different cycles
• And finally, remember we have a track record of managing through different cycles – this shows our growth since we set out in a wide variety of market conditions – across loosening and tightening of interest rates – in periods of both widening and contracting credit spreads – across high and low m
Slide 15: Growth this decade and market outlook
• This decade Barclays has grown faster than any other institution in investment banking and investment management – Barclays Capital: PBT grown at 25% – Investment Management (including both BGI and Wealth): PBT grown at 39% • There’s been serious dislocation in the markets in the last few months -
Slide 16: Thanks very much – happy to take questions
• Thanks very much – happy to take questions 14 Robert E. President, Lehman Thanks 14 very Financial Diamond Barclays much Services –PLC Jrhappy Conference, to take questions New York 10th September 2007
Slide 17: Important information and forward-looking statements
15 SEC In Schedule materials. certain INVESTORS BECOME Investors from Forward This 1933, statements ‘estimate’, financial By interpretations under and the made regard may 15 connection their Barclays Exchange objectives regulatory future make document filings ABN by as IFRS, thereto jurisdictions na
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