Barclays Plc · LSE:BARC
Barclays — IPO Roadshow (January 2016)
51 slides from Barclays's IPO roadshow presentation, Jan 5, 2016
Slide 1: Barclays PLC Fixed Income Investor Presentation Q3 2015 Results
Free Writing Prospectus Filed Pursuant to Rule 433 Reg-Statement No. 333-195645 Barclays PLC Fixed Income Investor Presentation Q3 2015 Results Announcement 29 October 2015
Slide 2: Continued progress in Q3 2015
Continued well: 11.1% PBT 2 | Barclays of progress Ł6.0bnQ3 inand 2015 2015 RoEyear Fixed of to 10.5% Income date Further Increased Investor progress Group Presentation on adjusted Non-Core: pre-tax Ł2.5bn profits ofby equity 4%, released with Core YTD up 7% andPositive RWAs reduced cost to income t
Slide 3: Performance Overview
PERFORMANCE HOLDCO TRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Performance Overview
Slide 4: Group financial summary
[Graphic Operating Tax component Losses average 3% reduced resulting UK within AT1 to customer (1,630) coupons Ł19.1bn Non-Core on shareholders’ 5% Appears insale expenses of a(1,481) toRoE |redress –2Ł12.5bn relating from 429 Adjusted •Here] of Statutory 9% (12,051) the active 7.1% of equity1 topri
Slide 5: Core business performance
PERFORMANCE Profit (202) allocated Ł320bn Banking1 by loan implementation increased results Investor adverse loss (201)—– growth into Ł327bn Presentation rate equity capital 272 currency GBPimproving across 251 Litigation costs Ł43.0bn Leverage using base—Average (8%) HOLDCO movements all inthe oper
Slide 6: Non-Core shrinkage and Investment Bank
PERFORMANCE shrinkage Operating (173) contribution Ł8.5bn of business securities, year-on-year Non-Core average trade (203) •unwinds equity is RWAs and expenses drag Fixed expected (328) (1.0p) tocapital of on Ł312m reduced Income to the Financial Group HOLDCO (1.2p) reduce (321) toNon-Core recyclin
Slide 7: Non-Core: reductions across every measure
PERFORMANCE across 2015 Fixed everyIncome measure HOLDCO Investor 1 Operational Presentation TRANSITION risk plus DTAs CAPITAL | 2 Total & LEVERAGE reflects rounding LIQUIDITY | 3 Excluding & FUNDING litigation, ASSET CTA and QUALITY UK BankCREDIT Levy | 4RATING ExcludesAPPENDIX impact of theOVERVIE
Slide 8: Capital & Leverage
PERFORMANCE HOLDCO TRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Capital & Leverage
Slide 9: CET1 ratio strengthening in Q3
PERFORMANCE strengthening in expect 4.2% the interpretation definition to deductions, Q315—Fully-loaded the Ł14bn and estimates to continue is of reduction and already leverage ofas athe key PRA of to HOLDCO above final achieved capital grow Jun-14 exposure adjusted CET1 CRD our our metrics onwards
Slide 10: RWAs managed
PERFORMANCE managed PCB Lending 10 | Barclays • Inbusiness Core, to support Q3RWAs 2015 1HOLDCO Excludes business increased Fixed Income growth model TRANSITION Ł7bnand and Investor particularly methodology capital CAPITAL Presentation ratio in the accretion driven & Investment LEVERAGE movements RW
Slide 11: Capital requirements and transition to end-state
PERFORMANCE the 16.5% capital state requirement P2A 2 reflect risk transition requirement)—T2 tomight idiosyncratic (Jun-15: •maintain We aim as further towards per 16.2%) to a total HOLDCO the manage impact risks end-state PRA’s of capital respectively, not 0.7% the our fully Individual TRANSITION
Slide 12: Capital management
PERFORMANCE management loaded robust towards distribution frequently are or targets; the published assuming 141, as October CRD end-state otherwise. defined calibrated P2A restrictions IV capital CET1 to >12% at 2012 CET1 for straight 10 the in •2015 restrictions The illustrative focus CRD November
Slide 13: Leverage ratio increased
PERFORMANCE increased capital underlying derivatives broadly Income growth Investor consistent tobusiness exposures 4.2% • Leverage Presentation Leverage with HOLDCO growth 1 the Jun-15 exposure BCBS and exposure1 TRANSITION and to 270 aMar-15 up lesser definition, by (Łbn) Ł2bn extent, based L&A CA
Slide 14: Holding company transition and structural reform
PERFORMANCE transition and structural HOLDCOreformTRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Holding company
Slide 15: Resolution rank
PERFORMANCE resolution rank down The powers LGD. capacity creditor equity which Document of theloss pari of Bank However, any capacity. ensures hierarchy its at on passu 1recapitalisation on OpCo intercompany HoldCo’s Recovery Illustrative the irrespective OpCo This step adequacy provides in HOLDCO
Slide 16: HoldCo funding profile
PERFORMANCE profile subscribe investors capital debt unsecured imposed outstanding regulation, interpretations, Q3 2015 proceeds and ofduring Fixed should Holding for debt of term atsenior loss- are Barclays Income at 2014, transition funding also used the Company HOLDCO including unsecured be HoldC
Slide 17: TLAC/MREL roll out
PERFORMANCE out PLC RWAs unsecured Barclays to possibility expectations rules TLAC future resolution”, implementation qualify excludes comprise Income OpCo of(HoldCo) on HoldCo TLAC/MREL 382 and for Investor TLAC operating PLC current Ł28bn adebt to consolidated MREL Leverage 2% published •partially
Slide 18: HoldCo company balance sheet
PERFORMANCE company subsidiary Debt equity 42,651 operating balance Ł1,000m Notes Bank securities PLC, and instruments Notes sheet of accounts company €100m 2,866 with which •Investment Barclays ina5,318 issue of ranking HOLDCO Barclays was 4,326 • private As6,913 issued 2,056 Barclays PLC 4,326 inc
Slide 19: Funding for structural reform
PERFORMANCE for in banking Maintaining next PLC senior structured regulatory the structural year term UK unsecured and subject senior market notes requirements financial some reform and unsecured funding to with corporate HOLDCO our short-term Evolving robustness over ongoing 19needs |debt 16 Barcla
Slide 20: Liquidity & Funding
PERFORMANCE HOLDCO TRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Liquidity & Funding
Slide 21: Liquidity pool and LCR
PERFORMANCE liquidity date with reassessment bonds—93% 15: Income 2.1x) LCR1 theInvestor Group position, that 124% of ofliquidity sovereign government wholesale Presentation 118% with HOLDCO pool 1pool January support debt well bonds at TRANSITION maturing Ł142bn, in2018 and are excess updated secur
Slide 22: Stable funding
PERFORMANCE stable funding Barclaycard 15bn end next Only•few in contains This and 2015 Unsecured years. diverse is and materially across non-Investment • Africa We sources HOLDCO term public intend Banking below funding ofand tofunding, TRANSITION total maintain Bank private predominantly Sub. term
Slide 23: Diverse wholesale funding
PERFORMANCE diverse Covered but reducing while equivalent issued remaining included 2015? 5Fixed Ł21bn by years wholesale bonds/ABS in as Barclays in of outstanding Income we> Q415) matures public 5de-lever years funding HOLDCO Bank Investor and benchmark Subordinated within By subordinated the Ł13b
Slide 24: Asset quality
PERFORMANCE HOLDCO TRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Asset quality
Slide 25: Reduction in CRLs
PERFORMANCE in CRLs days charge CRL or9,338 (annualised) more, balances 7,754 impaired reflecting L&As1 HOLDCO as aorproportion restructured 475,333 Barclays TRANSITION 487,530 ofprudent gross loans.loans Definitions approach These CAPITAL and may advances to•& include credit ALEVERAGE loanrisk 1bec
Slide 26: Eurozone exposures
PERFORMANCE Eurozone exposures European exposure 2015 Fixed to periphery retail toIncome Greece Spain andHOLDCO were is Investor corporate (H115) Ł35m disposed Exposures (2014: Presentation TRANSITION exposures ofŁ27m) asby oforgeography 2•materially January Local CAPITAL net 2015 (Łbn)1 reduce fund
Slide 27: Oil & gas and metals & mining exposure
PERFORMANCE Our our counterparties Lower commodity exposures PLC lending exposure 2014 operating and are Annual prices is to conservative—Lending with robust Oil the costs YTD Report HOLDCO established Oil &risk against Gas impairment &management | Gas 27 is well TRANSITION |dollar and Barclays trac
Slide 28: Credit ratings
PERFORMANCE HOLDCO TRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Credit ratings
Slide 29: Credit ratings
PERFORMANCE Rating Baa3/Stable BB+—BBB- Swiss downgraded likelihood ratings systemically rating Industry senior There increase timelines Presentation was non-operating rating credit Agency upgraded in -wide for of no rated thickness A/Stable by ratings—Rating important downgraded CRA sovereign UT2 i
Slide 30: Key messages
PERFORMANCE strengthening Focused well and position Progressing otherwise reinvest and with on Non-Core stated high plans in118% ofCore 30 Barclays growth on HOLDCO shrinking |Liquidity businesses Barclays structural businesses already on Coverage TRANSITION Q3reform continue every 2015 solid where
Slide 31: Appendix
PERFORMANCE HOLDCO TRANSITION CAPITAL & LEVERAGE LIQUIDITY & FUNDING ASSET QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Appendix
Slide 32: Group strategy
PERFORMANCE of increased structural capital dividend to between activities end-state—Bring shareholder tocustomers needs back the synergies reform Core value into toplans make •HOLDCO the and and down Reallocate 1 Strategy businesses •clients, up cross-selling Emphasise our a significant TRANSITION
Slide 33: Simplifying Barclays, structurally lower cost base
PERFORMANCE simplifying structurally lower Barclays cost HOLDCO Rightsizing base Generating TRANSITION and focusing higherCAPITAL and the Investment more &sustainable LEVERAGE Bank Establishing returns LIQUIDITY 33 | Barclays a dedicated & FUNDING Q3 Non-Core 2015 Fixed ASSET unit Income and QUALITY
Slide 34: Barclays Core and Non-Core results
PERFORMANCE balanced Ł121bn |equity 34 | Barclays (RoE) Non-Core structure 9.5% Q3 2015 Barclays LBT HOLDCO ProfitFixed Ł337m before Group TRANSITION Income RWAs taxPersonal (PBT) Investor Ł55bn Ł1.8bn and CAPITAL Adjusted Presentation Corporate Return results1 &onLEVERAGE Banking tangible Income PB
Slide 35: Targets and updated guidance
PERFORMANCE targets/updated Costs Ł14.5bn over Income time Group Investor +1c.Ł0.4bn Excluding adjusted guidance Presentation HOLDCO SRP costs1 Costs Target/Guidance implementation in toTRANSITION Achieve 2015 Ł16.3bn | 2costs Sep-15 Excluding CAPITAL Ł11.9bn Core Status returns Costs c.Ł16.3bn & Ca
Slide 36: Core RoE guidance for 2016 updated to 11%
PERFORMANCE 2016 updated to 11% HOLDCO Return on TRANSITION Equity1 (%) Average CAPITAL allocated & LEVERAGE equity (Łbn) LIQUIDITY 1 Excluding & FUNDING Costs to Achieve ASSETbut QUALITY includingCREDIT SRP implementation RATING APPENDIX costs | 36 |OVERVIEW Barclays Q3 & 2015 STRUCTURAL Fixed Inco
Slide 37: Increased returns across all Core operating businesses
PERFORMANCE across all Core operating HOLDCO businesses TRANSITION 1 Includes CAPITAL Head Office & LEVERAGE | 37 | Barclays LIQUIDITY Q3 2015 Fixed & FUNDING Income Investor ASSETPresentation QUALITY CREDIT RATING APPENDIX OVERVIEW & STRUCTURAL REFORM Increased returns
Slide 38: Personal and Corporate Banking performance
PERFORMANCE in retail increased decreased improved Presentation Q3 and net interest corporate 1% 42bps 1%,year-on-year reflecting toincome HOLDCO 9.26%—PCB businesses1 lower and to Ł4.3bn TRANSITION margin fees 4,287 NIMand driven Income 4,342 decreased US Wealth primarily 4,333 CAPITAL (Łm) 8bps 1%
Slide 39: Core quarter cost targets and guidance
PERFORMANCE Core quarter implementation cost from guidance Q4162 costs HOLDCO Group 2016 1 Excluding Core adjusted TRANSITION guidance: CTA cost |targets/guidance1 2Ł14.5bn Excluding CAPITAL + c.Ł0.4bn UK&Bank (Łbn) LEVERAGE SRP Levy, Non-Core implementation litigation LIQUIDITY SRPand implementatio
Slide 40: Personal and Corporate Banking expenses performance
PERFORMANCE expenses performance interest RoE offset income to savings Ł82m ofby14.4% since margin reduced realised due reduced (1,222) 2012 measures toThree 3.05% the of 17% from (1,185) margins HOLDCO 14.4% improving months primarily strategic 2.97% Average 3% •inPBT the ended –Jun-15 TRANSITION e
Slide 41: Barclaycard and digital banking
PERFORMANCE biggest Unsecured Presentation branch lending PCBHOLDCO completed Retail September TRANSITION digitally2015 end to 2014 CAPITAL end2013 Ł0.5bn Digitally &Ł1.05bn LEVERAGE active Ł1.18bn1 5.3m LIQUIDITY 6.3m (yearly) 6.7mOnline & Barclays FUNDING unsecured Mobile ASSET lending Banking QUA
Slide 42: Barclaycard performance
PERFORMANCE Continued (32) tangible Ł36.9bn Income interest Costs Barclays (27) increased income increased equity Ł38.2bn Q3 16% growth; 2015 Total 21.8% increased 5% Customer 15% Fixed HOLDCO PBT to operating 28.3% Ł507m toup Income Ł1.3bn 15% 40% deposits Return TRANSITION expenses primarily toand
Slide 43: Africa Banking performance
PERFORMANCE of Litigation average Ł33.8bn (513) depreciated (RBB), growth partially eliminate statutory businesses. Income 13.3% (536) in both Investor tangible offset Ł31.7bn equity in the customer and The (4%) against ain impact challenging conduct by and of tangible Presentation equity3 –Customer
Slide 44: Investment Bank performance
PERFORMANCE up 1,665 (1,376) average Banking 12% 11% increased conduct 12% to1,811 Ł228m Ł441m (1,459) with equity charges increased 6%9% ato9% 3.1% driven due (6%) Impairment Ł1.5bn 1 Includes increase HOLDCO 20% to5.2% Profit higher byprimarily tolower Cost:income Ł0.7bn ‘Other’ before in(5) incom
Slide 45: Wholesale funding composition and maturity
PERFORMANCE composition months Bank Senior 17.0 38.1 collateral within Subordinated 157.0 PLC one unsecured years and Deposits year 1 1The Barclays settlement >1 | 3composition MTNs month liabilities HOLDCO Primarily from PLC balances. (public >3 banks months Senior —comprised TRANSITION of— 11.6 be
Slide 46: Term senior unsecured debt maturity profile
PERFORMANCE term senior unsecured HOLDCO debt maturity TRANSITION profile BB CAPITAL PLC structured & LEVERAGE notes (Ł28bn LIQUIDITY total) BB&PLC FUNDING term senior ASSETunsecured QUALITY debt (Ł21bn CREDITtotal) RATING 46 | Barclays APPENDIXQ3 2015 OVERVIEW Fixed Income & STRUCTURAL Investor Pre
Slide 47: Considerations for bail-in and resolution
PERFORMANCE European avoiding institutions governed was down capital insolvency to laws, principle should provision EEA Fixed include amended law may and/or Income hierarchy, bethe is governed by whereby Bank treated all be Considerations and that non-EEA bail-out converting outstanding subject in I
Slide 48: Contact – Debt Investor Relations
Contact – Debt Investor Relations daniel.colvin@barclays. com Website: Teambarclays. Lisa Bartrip com/barclays +44 (0)20-investor 7773 0708 -relations. lisa.bartrip@barclays. html 48 | Barclays comQ3 Sofia 2015Lonnqvist Fixed Income +44 (0)20 Investor 7116Presentation 5716 sofia.lonnqvist@barclays.
Slide 49: Disclaimer
Disclaimer financial supplement prospectus contains Group. contained such statements payment strategic numbers changes future factors UK, of the influences forth 31 disclosure Fixed changes December SEC potential US, as inIncome legal including Barclays ‘may’, the in online certain cost Africa, of a
Slide 50: Disclaimer
Disclaimer of performance management reconciled measures sec.gov/Archives/edgar/data/312069/000119312515357665/d77368dex991. equivalent including reconciliation own operating defined achieve customer per controlling gain IFRS average as shareholders’ proportion its ashare proportion on credit, finan
Slide 51: Disclaimer
Disclaimer reserves shareholders, adjusted 8 the periods. for supplements measure; in October further measure provisions ratio (CUSIP: Barclays’ United beginning regulations, Operating December the deduction nine according income revisions Kingdom. months For 29 2014). in is for 06739FHK0) •current