Barclays Plc · LSE:BARC
Barclays — Debt Investor Presentation (August 2024)
22 slides from Barclays's debt investor presentation, Aug 1, 2024
Slide 1: Q2 2024 Fixed Income Investor Call
Q2 2024 Fixed Income Investor Call 1st August 2024
Slide 2: Anna Cross, Group Finance Director
Anna Cross Group Finance Director
Slide 3: We set out financial targets and are on the path to delivery
We set out financial targets and are on the path to delivery Barclays Q2 2024 Results August 2024 3 Targets Q224 H124 2024 2026 Statutory RoTE 9.9% 11.1% >10% >12% 11.8% excl. inorganic activity1 12.0% excl. inorganic activity1 c.10.5% excl. inorganic activity1 Broadly in line with At least £10bn3 T
Slide 4: LLR of 38bps; maintaining through the cycle guidance of 50-60bps
LLR of 38bps; maintaining through the cycle guidance of 50-60bps Barclays Q2 2024 Results August 2024 4 LLR guidance 800 over FY24-FY26 period 190 Loan loss rate (bps) 636 610 582 600 515 US Consumer Bank 438 Trend towards 140 411 long term average 337 400 Q224 impairment charge: of c.400bps 257 £30
Slide 5: Daniel Fairclough, Group Treasurer
Daniel Fairclough Group Treasurer
Slide 6: H124 highlights
H124 highlights Barclays Q2 2024 Results August 2024 6 Strong balance sheet evidenced across key metrics 13.6% Prudently managed capital position vs. 13-14% Capital 13.9% 13.8% CET1 target range 33.5% MREL 33.5% 33.6% MREL MREL position of £117.8bn 167% Robust liquidity levels; Liquidity 156% 161% A
Slide 7: CET1 ratio within the 13-14% target range
CET1 ratio within the 13-14% target range Barclays Q2 2024 Results August 2024 7 Q224 CET1 ratio movements (9bps) (9bps) 35bps (8bps) c.(20bps) 13.5% 13.6% 13.4% Q124 Attributable Dividend RWA Other Q224 H124 announced Q224 rebased profit accrual ex. FX inc. FX buyback H124 CET1 ratio movements (18b
Slide 8: Operating with a prudent buffer to each tier of capital requirements
Operating with a prudent buffer to each tier of capital requirements Barclays Q2 2024 Results August 2024 8 AT1 and T2 needs managed on a total capital basis Balanced total capital structure As at Q224 • Operating with prudent buffers at each part of the capital stack to manage FX and RWA movements
Slide 9: MREL position well established; 80% of 2024 issuance plan complete
MREL position well established; 80% of 2024 issuance plan complete Barclays Q2 2024 Results August 2024 9 MREL position at Q224 HoldCo issuance 33.5% • c.£12bn 2024 MREL issuance plan (£117.8bn) 30.1% o £9.7bn executed YTD across Senior, Tier 2 and AT1 (£105.8bn) o No further AT1 issuance expected t
Slide 10: Diverse and stable franchise deposit base
Diverse and stable franchise deposit base Barclays Q2 2024 Results August 2024 10 QoQ movements Investment Bank BUK: Personal Banking £132bn, +3% £183bn, flat • International Corporate Bank1: £98bn, +2% • 72% insured • Treasury deposits: £34bn, +7% • >75% of relationships 5+ years UK Corporate Bank
Slide 11: Prudently managed LCR supported by a highly liquid balance sheet
Prudently managed LCR supported by a highly liquid balance sheet Barclays Q2 2024 Results August 2024 11 Average LCR1 Average NSFR2 76% of Liquidity Pool held in cash HTC £18bn 139% 139% 138% 138% 136% 136% FVOCI 5% 157% 157% 159% 161% 163% 167% £60bn 18% Q123 Q223 Q323 Q423 Q124 Q224 Q123 Q223 Q323
Slide 12: £2.2bn structural hedge income in H124
£2.2bn structural hedge income in H124 Barclays Q2 2024 Results August 2024 12 Gross hedge income expected to continue to grow 10.0 09.0 Q224: 3.9% Gross contribution 3.4% resilient to marginal 08.0 4.1% changes in rates 07.0 and hedge notional GBP 5yr Q224: 1.9% swap rate1 06.0 1.0% 0.9% Average 05
Slide 13: Lower interest rate sensitivity, with one rate cut expected in 2024
Lower interest rate sensitivity, with one rate cut expected in 2024 Barclays Q2 2024 Results August 2024 13 Illustrative interest rate sensitivity1 • Illustrative Group income impact from a 25bps Year 1 Year 2 Year 3 downward parallel shift in interest rate curves • The sensitivity is calculated usi
Slide 14: Targeting Barclays PLC to be "A" composite across all indices over time
Targeting Barclays PLC to be “A” composite across all indices over time Barclays Q2 2024 Results August 2024 14 Strong momentum with Current Senior long and short term ratings 2023 credit rating upgrades Moody’s Standard & Poor’s Fitch • HoldCo Senior composite rate “A” for two of four indices • One
Slide 15: Risk transfer transactions enhance Barclays' risk management capabilities
Risk transfer transactions enhance Barclays’ risk management capabilities Barclays Q2 2024 Results August 2024 15 Purpose Barclays transfers c.£60bn1 risk via a variety of structures UK Corporate Bank and Investment Bank • The banking book has inherent credit Corporate risk, driving risk weight dens
Slide 16: Risk transfer activities focused on corporate loans and credit cards
Risk transfer activities focused on corporate loans and credit cards Barclays Q2 2024 Results August 2024 16 Corporate loans US credit cards • Colonnade programme established in 2016 • Initiated risk transfer in Q124 to help optimise • Deployed against exposure in the UK Corporate Bank and Investmen
Slide 17: Q&A
Q&A
Slide 18: RWAs increased by £1.8bn QoQ
RWAs increased by £1.8bn QoQ Barclays Q2 2024 Results August 2024 18 Risk weighted assets (£bn) 0.6 (1.9) 2.9 (0.0) 0.5 (0.2) 351.4 349.6 336.9 Q223 Q124 Barclays UK UK Corporate Private Bank & Investment Bank US Consumer Head Office Q224 Bank Wealth Bank Management Regulatory driven RWA inflation g
Slide 19: CET1 ratio with significant headroom to MDA
CET1 ratio with significant headroom to MDA Barclays Q2 2024 Results August 2024 19 CET1 minimum requirements at Q224 Leverage minimum requirements at Q224 MDA 12.0% CCyB 0.9% Reg Min 4.08% CCB 2.5% CCLB 0.30% G-SII 1.5% G-SII 0.53% 13.6% Pillar 2A 2.6% 5.0% 4.7% BoE minimum leverage 3.25% requireme
Slide 20: Unchanged guidance on regulatory driven RWA inflation
Unchanged guidance on regulatory driven RWA inflation Barclays Q2 2024 Results August 2024 20 Overall impact still expected at lower end of 5-10% of Group RWAs Basel 3.1 Lower end of 5-10% RWA inflation of Dec-23 position US Cards IRB c.£16bn Q125 Q325 US Cards IRB: Expected Q125 Basel 3.1: 1 July 2
Slide 21: Executed £9.7bn of c.£12bn 2024 issuance plan
Executed £9.7bn of c.£12bn 2024 issuance plan Barclays Q2 2024 Results August 2024 21 2024 HoldCo benchmark Annual HoldCo issuance volume (£bn) and currency1,2 issuance 15.0 14.1 c.12 Jan-24: EUR 1.0bn 11.5 12.1 plan 11.0 Senior 8.6 10.7 7.8 9.8 Mar-24: USD 4.5bn multi-tranche 6.1 Senior 10.2 4.0 8.
Slide 22: Disclaimer
Disclaimer Barclays Q2 2024 Results August 2024 22 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 legislation, an offer to