Slide 1: Barclays PLC 2012 Results
Barclays PLC 2012 Results 12 February 2013
Slide 2: Chris Lucas, Group Finance Director
Chris Lucas Group Finance Director
Slide 3: Adjusted financial highlights
Adjusted financial highlights 2012 2011 Change Full year (£m) (£m) (%) Income 29,043 28,512 2 Impairment charges (3,596) (3,802) (5) Net operating income 25,447 24,710 3 Operating expenses (18,539) (19,180) (3) Adjusted profit before tax1 7,048 5,590 26 Statutory profit before tax 246 5,879 1 Includ
Slide 4: Adjusting items to PBT
Adjusting items to PBT 2012 2011 Change Full year (£m) (£m) (%) Profit before tax 246 5,879 - Own credit charge/(gain) 4,579 (2,708) - Provision for PPI redress 1,600 1,000 - Provision for interest rate hedging 850 - - products redress (Gain) on sale / impairment on (227) 1,858 - BlackRock investmen
Slide 5: Adjusted performance measures
Adjusted performance measures Full year 2012 2011 Return on average shareholders’ equity 7.8% 6.6% Return on average tangible shareholders’ equity 9.1% 7.9% Return on average risk weighted assets 1.3% 1.1% Cost: income ratio 64% 67% Compensation: net operating income 38% 42% Basic earnings per share
Slide 6: UK Retail and Business Banking
UK Retail and Business Banking 2012 2011 Change Full year (£m) (£m) (%) Income 4,421 4,656 (5) Impairment charges (269) (536) (50) Net operating income 4,152 4,120 1 Operating expenses (2,684) (2,702) (1) (excl. provision for PPI redress) Adjusted profit before tax1 1,472 1,420 4 Adjusted return on
Slide 7: Barclaycard
Barclaycard 2012 2011 Change Full year (£m) (£m) (%) Income 4,170 4,095 2 Impairment charges (979) (1,259) (22) Net operating income 3,191 2,836 13 Operating expenses (excl. provision for PPI (1,715) (1,659) 3 redress and goodwill impairment) Adjusted profit before tax1 1,506 1,208 25 Adjusted retur
Slide 8: Africa Retail and Business Banking
Africa Retail and Business Banking 2012 2011 Change Full year (£m) (£m) (%) Income 3,157 3,571 (12) Impairment charges (646) (466) 39 Net operating income 2,511 3,105 (19) Operating expenses (2,053) (2,279) (10) Adjusted profit before tax1 468 832 (44) Adjusted return on average equity 3.8% 9.7% Adj
Slide 9: Europe Retail and Business Banking
Europe Retail and Business Banking 2012 2011 Change Full year (£m) (£m) (%) Income 915 1,226 (25) Impairment charges (328) (261) 26 Net operating income 587 965 (39) Operating expenses (excl. goodwill (839) (1,211) (31) impairment) Adjusted loss before tax1 (239) (234) 2 Adjusted return on average e
Slide 10: Investment Bank
Investment Bank 2012 2011 Change Full year (£m) (£m) (%) Income 11,722 10,335 13 Impairment charges (460) (93) Net operating income 11,262 10,242 10 Operating expenses (7,249) (7,289) (1) Profit before tax1 4,063 2,965 37 Return on average equity 13.7% 10.4% Cost: income ratio 62% 71% Cost: net oper
Slide 11: Investment Bank quarterly income
Investment Bank quarterly income (£m) Total Income Total income Q1 • Q4 2012 vs Q4 2011 up 43% Q2 • Q4 2012 vs Q3 2012 down 2% Q3 Q4 3,366 3,464 3,032 2,897 2,633 2,593 2,254 1,818 2011 2012 11 | Barclays 2012 Results | 12 February 2013
Slide 12: Investment Bank quarterly income
Investment Bank quarterly income (£m) Q1 2011 2,396 Q2 2011 2,201 Q3 2011 1,968 Q4 2011 1,715 Q1 2012 1,581 1,438 1,458 Q2 2012 Q3 2012 Q4 2012 971 612 626 545 563 550 534 484 520 506 509 501 487 423 389 338 305 FICC Equities and Prime Services Investment Banking Q4 12 v (8%) (9%) 29% Q3 12 Q4 12 v
Slide 13: Corporate Banking
Corporate Banking 2012 2011 Change Full year (£m) (£m) (%) Income 2,918 3,108 (6) Impairment charges (872) (1,147) (24) Net operating income 2,046 1,961 4 Operating expenses (excl. provision for interest rate hedging products redress and (1,505) (1,759) (14) goodwill impairment) Adjusted profit befo
Slide 14: Wealth and Investment Management
Wealth and Investment Management 2012 2011 Change Full year (£m) (£m) (%) Income 1,815 1,744 4 Impairment charges (38) (41) (7) Net operating income 1,777 1,703 4 Operating expenses (1,463) (1,493) (2) Profit before tax1 315 207 52 Return on average equity 13.9% 10.9% Cost: income ratio 81% 86% 1 In
Slide 15: Head Office and Other Operations
Head Office and Other Operations 2012 2011 Change Full year (£m) (£m) (%) Income (excl. own credit, gains on debt buy-backs and gain/(loss) on disposal of (75) (223) (66) investment in BlackRock, Inc.) Impairment charges (4) 1 Net operating income (79) (222) (64) Operating expenses (1,031) (788) 31
Slide 16: Solid capital, liquidity and funding
Solid capital, liquidity and funding As at 31 Dec 2012 31 Dec 2011 Core Tier 1 ratio 10.9% 11.0% Risk weighted assets £387bn £391bn Adjusted gross leverage 19x 20x Adjusted gross leverage excluding the 16x 17x liquidity pool Group liquidity pool £150bn £152bn Year ended 31 Dec 2012 Term issuance com
Slide 17: Pro forma Core Capital ratios
Pro forma Core Capital ratios (%) Reported ratio Transitional CRD IV ratio Fully loaded CRD IV ratio 11.0 10.9 10.6 8.2 31 Dec 11 31 Dec 12 01 Jan 13 CT1 CT1 Pro forma CET1… (Basel 2.5) (Basel 2.5) 1 Includes effect of IFRS changes on 1 Jan 2013. For details and basis of calculation, see slides 35-3
Slide 18: NIM lower due to smaller contribution from hedges
NIM lower due to smaller contribution from hedges Customer margin £m FY 20111 FY 20121 Non-customer margin Non-customer income 2,140 1,338 Customer income 9,849 9,816 Average assets 318,429 319,420 Basis points Average liabilities 270,902 283,069 203 185 36 22 167 163 FY 2011 FY 2012 1 Numbers refer
Slide 19: Adjusted cost: income ratio improved to 64%
Adjusted cost: income ratio improved to 64% (£m) 28,512 +2% 29,043 Performance costs Non-performance costs 19,180 (3%) 18,539 2,527 (4%) 2,425 (3%) 16,653 16,114 FY 2011 FY 2012 FY 2011 FY 2012 Costs Total income 19 | Barclays 2012 Results | 12 February 2013
Slide 20: Summary
Summary Adjusted profit before tax up 26% Income up 2% with operating expenses down 3% on an adjusted basis Impairment improved 5% Capital, liquidity and funding remain strong 20 | Barclays 2012 Results | 12 February 2013
Slide 21: Appendix
Appendix 2012 Results 21 | Barclays 2012 Results | 12 February 2013
Slide 22: Adjusted return on equity (RoE) increased to 7.8%
Adjusted return on equity (RoE) increased to 7.8% (%) FY 2011 RoE FY 2012 RoE 6.6% Group 7.8% 14.9% UK RBB 16.0% 17.4% Barclaycard 22.1% 9.7% Africa RBB 3.8% (6.0%) Europe RBB (8.0%) 10.4% Investment Bank 13.7% 1.7% Corporate Banking 5.5% 10.9% Wealth and Investment Mgmt 13.9% 22 | Barclays 2012 Res
Slide 23: Analysis of net interest margin
Analysis of net interest margin RBB, Total RBB, Corporate UK Europe Africa Barclay- Corporate Wealth Corporate and Wealth As at 31 Dec 2012 RBB RBB RBB card Banking and IM and interest Wealth income (£m) Net interest margin (%): 1.37 1.08 3.12 8.35 1.24 1.22 1.85 11,154 Of which customer margin (%)
Slide 24: Net interest income
Net interest income 2012 2011 Change Full year (£m) (£m) (%) Customer assets 6,723 6,983 (4) Customer liabilities 3,093 2,866 8 Total1 9,816 9,849 (0) Product structural hedge 989 1,168 (15) Equity structural hedge 231 824 (73) Other 118 148 (20) Total1 1,338 2,140 (37) Total RBB, Corporate Banking
Slide 25: Total incentive awards granted
Total incentive awards granted 2012 2011 Change Full year (£m) (£m) (%) Current year cash bonus 852 832 2 Current year shares bonus 15 66 (77) Total current year bonus 867 898 (3) Deferred cash bonus 489 618 (21) Deferred share bonus 498 634 (21) Total deferred bonus 987 1,252 (21) Bonus pool 1,854
Slide 26: Income statement charge
Income statement charge 2012 2011 Change Full year (£m) (£m) (%) Charges relating to deferred bonuses 1,223 995 23 Other performance costs 1,202 1,532 (22) Performance costs 2,425 2,527 (4) Salaries and other compensation costs 5,981 6,277 (5) Total compensation costs 9,786 10,414 (6) Non compensati
Slide 27: Income statement charge for deferred bonuses
Income statement charge for deferred bonuses 2012 2011 Change Full year (£m) (£m) (%) Deferred bonuses from 2009 and earlier 153 405 (62) bonus pools Deferred bonuses from 2010 bonus pool 404 590 (32) Deferred bonuses from 2011 bonus pool 666 - - Deferred bonuses from 2012 bonus pool - - - Income st
Slide 28: Balance Sheet summary
Balance Sheet summary 31 Dec 12 31 Dec 11 (£bn) (£bn) Total assets 1,490 1,564 Including Derivative financial instruments 469 539 Loans and advances to customers 426 432 Total Liabilities 1,427 1,498 Including Derivative financial instruments 462 528 Customer accounts 386 366 Shareholders’ equity 63
Slide 29: Balance Sheet
Balance Sheet (£bn) Assets Liabilities 1,436 466 460 347 347 328 303 150 101 138 145 87 Total Gross Derivative financial Repo financing, Customer Customer Liquidity <1 Yr Other >1 Yr Equity and Assets/ instruments and other L&A Deposits Pool wholesale assets 2 wholesale other Liabilities matched ass
Slide 30: Calculation of adjusted gross leverage
Calculation of adjusted gross leverage 31 Dec 12 31 Dec 11 As at (£bn) (£bn) Total assets 1,490 1,564 Counterparty netting (388) (441) Collateral on derivatives (47) (51) Net settlement balances and cash collateral (72) (62) Goodwill and intangible assets (8) (8) Customer assets held under investmen
Slide 31: RWAs by business
RWAs by business 31 Dec 12 31 Dec 11 As at (£m) (£m) UK RBB 38,783 33,956 Europe RBB 17,112 17,436 Africa RBB 27,008 30,289 Barclaycard 36,464 34,186 Investment Bank 178,019 186,700 Corporate Banking 67,973 72,842 Wealth and Investment Management 15,833 13,076 Head Office and Other Operations 5,666
Slide 32: Capital resources
Capital resources 31 Dec 12 31 Dec 11 As at (£m) (£m) Shareholders’ equity (excl. NCIs) 53,586 55,589 Qualifying NCIs 2,450 2,661 Regulatory adjustments and deductions: Goodwill and intangible assets (7,622) (7,560) Own credit cumulative loss/(gain) 804 (2,680) Defined benefit pension adjustment1 (2
Slide 33: RWA bridge
RWA bridge (£bn) 18 28 20 11 391 3 387 Dec-11 Methodology Operational Business risk FX Change in risk Dec-12 changes risk reduction parameters 33 | Barclays 2012 Results | 12 February 2013
Slide 34: Capital bridge
Capital bridge (£bn) 0.2 1.4 3.5 1.6 0.1 43.1 1.2 0.1 42.1 CT1 Capital Removal of Loss after tax Dividend Movement in Other Defined Other CT1 Capital FY 11 own credit paid currency movements benefit FY 12 (net of tax) translation in reserves pension reserves adjustment 34 | Barclays 2012 Results | 1
Slide 35: Pro forma CRD IV capital and RWAs
Pro forma CRD IV capital and RWAs Reported Pro forma 1 Jan 2013 31 Dec 2012 CET1 Transitional CET1 Fully-loaded CT1 Capital (FSA 2009 definition) 42.1 42.1 IFRS10 impact (introduced on 1 Jan 2013) (0.4) CT1 Capital post-IFRS 10 (FSA 2009 definition) 41.7 RWAs (Basel 2.5) 387 387 CT1 Ratio (Basel 2.5
Slide 36: Pro forma CRD IV capital and RWAs - Notes
Pro forma CRD IV capital and RWAs - Notes Pro forma Capital Ratios are based on/subject to the following: CRD IV, models and waivers • The proforma ratios, capital computations and RWAs are based on our interpretation of the draft July 2011 CRD IV rules and best expectation of how these draft rules
Slide 37: Pro forma CRD IV capital and RWAs - Notes
Pro forma CRD IV capital and RWAs - Notes Pro forma Capital Ratios are based on/subject to the following: RWAs • It is assumed that EU corporates, pension funds and sovereigns are exempt from CVA volatility charge • It is assumed all CCPs will implement CPSS-IOSCO’s “Principles for Financial Market
Slide 38: Investment Bank credit market exposures
Investment Bank credit market exposures Period ended 31 Dec12 Imp. Total FV (losses) 31 Dec 12 31 Dec 11 (charge) (losses)/ As at /gains (£m) (£m) /release gains (£m) (£m) (£m) ABS CDO Super Senior 1,387 1,842 (33) (232) (265) US sub-prime and Alt-A 698 1,381 83 (22) 61 Commercial real estate loans
Slide 39: Wholesale debt maturity table as at 31 Dec 12
Wholesale debt maturity table as at 31 Dec 12 3-12 Total < 1 Total > 1 < 3 months Total months year year £bn £bn £bn £bn £bn Deposits from banks 19.5 2.2 21.7 8.8 30.5 Certificates of deposit and 29.2 15.9 45.1 3.3 48.4 commercial paper Asset backed commercial paper 5.4 - 5.4 - 5.4 Senior unsecured
Slide 40: Reduced exposure to the Eurozone periphery
Reduced exposure to the Eurozone periphery Spain Italy Portugal Ireland As at 31 Dec 2012 (£m) (£m) (£m) (£m) Sovereign 1,690 2,669 637 11 Corporate 4,135 1,962 1,958 1,127 Residential mortgages 13,305 15,591 3,474 112 Financial institutions 1,488 528 48 3,768 Other retail lending 2,428 1,936 1,783
Slide 41: Spanish exposures
Spanish exposures Retail Gross mortgage exposure by location of Average indexed LTV of 65% outstanding balances Average retail customer age 48; less than 1% of mortgage balances with customers aged under Barcelona 25 c.13% 0.7% of home loans greater than 90 days in arrears1 Corporate Madrid
Slide 42: Portuguese exposures
Portuguese exposures Retail Gross mortgage exposure by location of Average indexed LTV of 78% outstanding balances Average retail customer age 42; less than 1% of mortgage balances with customers aged under 25 0.7% of home loans greater than 90 days in Porto arrears1 c.15% Corporate £1.4bn n
Slide 43: Italian exposures
Italian exposures Retail Gross mortgage exposure by location of Average indexed LTV of 47% outstanding balances Average retail customer age 47; less than 3% of Milan mortgage balances with customers aged under c.10% 25 1.0% of home loans greater than 90 days in arrears1 Corporate Focused on
Slide 44: 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