Barclays Plc · LSE:BARC
Barclays — Société Générale The Premium Review Conference 2009
22 slides from Barclays's conference presentation, Dec 2, 2009
Slide 1: Société Générale The Premium Review Conference
Société Générale The Premium Review Conference 02 December 2009
Slide 2: Chris Lucas, Group Finance Director
Chris Lucas Group Finance Director
Slide 3: Group performance
Group performance Nine months ended 2009 2008 % September £m £m change Income 23,786 18,830 26 Operating expenses (13,226) (11,091) 19 Impairment charges (6,214) (3,762) 65 Profit before tax 4,542 5,595 (19) Adjusted profit before tax* 4,413 2,046 116 * Profit before tax, own credit, gains on acquis
Slide 4: GRCB performance
GRCB performance Profit before tax £2.2bn Income +11% Positive jaws of +7% Cost +4%
Slide 5: UK Retail Bank
UK Retail Bank Margins • Partly offset by income growth in mortgages and hedging programme Impairment • Grew at lower rate than in first half Costs • Brought down by tight control of discretionary spending Acquisition • Standard Life Bank acquisition grows UK Retail Bank liabilities and mortgage boo
Slide 6: Barclays Commercial Bank
Barclays Commercial Bank Margins • Liability margin compression partly offset by improved asset margins Impairment • Higher but continued to benefit from diversified loan book Costs • Reduced by tight cost control
Slide 7: Barclaycard
Barclaycard • Growth driven by higher customer balances and Income improved margins Impairment • Rate of impairment growth declined in Q3 Risk • Conservative approval rate and reduced limits to new customers Costs • Increased slightly due to Goldfish acquisition in 2008, offset by lower discretionar
Slide 8: Western Europe
Western Europe Income • Growth from higher net interest income driven by strong growth in customer balances Impairment • Rate of growth lower than in first half Costs • Growth significantly lower than income growth Strategic JV • Growth benefited from one-off gain of £153m following completion of JV
Slide 9: Emerging Markets
Emerging Markets Income • Very strong growth without equivalent growth in customer assets Impairment • Rate of growth was slightly higher than in first half – UAE and India key focus Costs • Grew at higher rate than income due to investment in infrastructure and roll out costs
Slide 10: GRCB Absa
GRCB Absa Income Slightly ahead in rand terms Impairment Rising delinquencies in retail banking Cost Reduction in operating expenses Overall reduction in profit
Slide 11: Investment Banking and Investment Management Performance
Investment Banking and Investment Management Performance • Income growth 32%, driven by Barclays Capital • Profit before tax of almost £2bn for first nine months – well up yearonyear, excluding: – £1.5bn gain on acquisition in 2008 – Impact of movements in own credit
Slide 12: Barclays Capital
Barclays Capital 14.2 3.7 4.3 1.3 Credit market writedowns 1.4 0.8 Other 10.5 8.6 5.0 6.4 1.4 Topline Credit Own credit Reported Impairment Net income Operating PBT income market income expenses writedowns H1 09 Q3 09 9M 09
Slide 13: Barclays Capital - Cost to net income ratio
Barclays Capital - Cost to net income ratio % Reflects cost of build-out in Equities and 78 75 M&A 9M 09 H1 09
Slide 14: Barclays Global Investors
Barclays Global Investors Profit • Increased in sterling but declined in dollar terms Assets under • Increased by £87 bn to £1.2 trillion – net new asset management inflows continued in most asset classes Disposal • Sale of BGI business to BlackRock completed 1 December
Slide 15: Barclays Wealth
Barclays Wealth Costs • Costs of integrating Barclays Wealth Americas affected profits – but a platform for future growth Revenues • Broadly stable on a like-for-like basis Client • Total client assets were in line with end-2008 Assets
Slide 16: Balance sheet management
Balance sheet management £bn 31 Dec 08 30 June 09 30 Sep 09 Total assets 2,053 1,545 +5% Liquidity buffer 36 88 110 Adjusted gross leverage 28x 22x Broadly consistent Risk weighted assets 433 406
Slide 17: Capital ratios
Capital ratios % Core Tier 1 Tier 1 11.9 10.5 9.2 8.6 7.1 5.6 Dec Jun Pro- Dec Jun Pro- 08 09 forma 08 09 forma Jun 09 Jun 09
Slide 18: Outlook
Outlook • Trading in October was consistent with trends in the first nine months of the year • Full year impairment now expected to be around £9 bn • Relatively few large single name charges in third quarter – typically would expect an increase in final quarter
Slide 19: GRCB and ExCo reorganisation
GRCB and ExCo reorganisation Corporate and Investment Banking Global Retail Banking ABSA and Wealth Management Retail Bank Barclays Capital Barclaycard Barclays Corporate Barclays Wealth
Slide 20: Regulatory framework
Regulatory framework Capital ratios Liquidity requirements Leverage ratios Other factors
Slide 21: Summary
Summary • Good nine months with profit before tax of £4.5 bn • Very strong income growth of 26% was significantly higher than cost growth • Rate of growth in impairment slowed in Q3 • Capital ratios and liquidity position strengthened further • Resumption of payment of a cash dividend
Slide 22: Chris Lucas, Group Finance Director
Chris Lucas Group Finance Director
Barclays — Société Générale The Premium Review Conference 2009 on 6ix