Slide 1: Barclays PLC Q1 2016 Financial Results
Barclays PLC Q1 2016 Financial Results 27 April 2016
Slide 2: Jes Staley, Barclays Group Chief Executive Officer
Jes Staley Barclays Group Chief Executive Officer
Slide 3: Tushar Morzaria, Barclays Group Finance Director
Tushar Morzaria Barclays Group Finance Director
Slide 4: Financial highlights
Financial highlights Underlying Core RoTE of 10.7%, driven by Barclays UK RoTE of 20.5% and Barclays Corporate & International RoTE of 9.5%1 CET1 ratio of 11.3% and leverage ratio of 4.3% – on track to meet end-state capital requirements, with capital benefits from strategic actions to come through
Slide 5: Statutory Group financials
Statutory Group financials Three months ended (£m) Mar-16 Mar-15 % change Q116 Performance metrics Income 5,041 5,650 (11%) • Group results reflect solid Core performance, with good progress Impairment (443) (386) (15%) made in Non-Core – Operating expenses (3,747) (3,067) (22%) – Litigation and con
Slide 6: Core: Underlying Return on Tangible Equity of 10.7%
Core: Underlying Return on Tangible Equity of 10.7% Business performance excluding notable items Profit/(loss) before tax (£m) Mar-16 Mar-15 % change Three months ended (£m) Mar-16 Mar-15 % change – Barclays UK 704 715 (2%) – Barclays Corporate & Income 5,392 5,300 2% 1,027 1,177 (13%) International
Slide 7: Barclays UK: Return on Tangible Equity of 20.5%
Barclays UK: Return on Tangible Equity of 20.5% Business performance excluding notable items Q116 Performance metrics Three months ended (£m) Mar-16 Mar-15 % change • Strong RoTE of 20.5% as PBT declined slightly to £704m Income 1,803 1,831 (2%) • Income reduced 2% to £1,803m, due to lower fee incom
Slide 8: Barclays UK: Stable income on increased customer balances
Barclays UK: Stable income on increased customer balances Income (£m) – Three months ended Mar-16 Mar-15 % change • NIM increased to 3.62%, with a marginal increase in net interest income − Improvement in savings margins offset by continued mortgage Net interest income 1,501 1,486 1% margin pressure
Slide 9: Barclays UK: Digital is Barclays' biggest branch
Barclays UK: Digital is Barclays’ biggest branch Personal Banking Q116 2015 2014 2013 Digitally active 5.3m 6.3m 6.9m 7.0m Barclays Mobile Banking (BMB) active customers 2.1m 3.1m 3.9m 4.1m Payments and transfers (monthly) £13.3bn £16.1bn £19.0bn £25.4bn Unsecured lending £0.5bn completed digitally
Slide 10: Barclays Corporate & International: RoTE of 9.5%
Barclays Corporate & International: RoTE of 9.5% Business performance excluding notable items Q116 Performance metrics Three months ended (£m) Mar-16 Mar-15 % change • Income growth of 2% to £3,513m through diversification benefit, driven by strong growth in CC&P and resilient CIB income – Corporate
Slide 11: Corporate & Investment Bank: RoTE of 7.3%
Corporate & Investment Bank: RoTE of 7.3% Business performance excluding notable items Q116 Performance metrics Three months ended (£m) Mar-16 Mar-15 % change • Resilient CIB performance in challenging conditions as income reduced 4% to £2,596m, including favourable FX moves Markets 1,408 1,466 (4%)
Slide 12: Consumer, Cards & Payments: RoTE of 23.4%
Consumer, Cards & Payments: RoTE of 23.4% Business performance excluding notable items Q116 Performance metrics Three months ended (£m) Mar-16 Mar-15 % change • PBT doubled to £326m on income growth of 24% including favourable FX moves, driving RoTE of 23.4% Income 917 741 24% − Double digit income
Slide 13: Non-Core: Continued rundown momentum
Non-Core: Continued rundown momentum Business performance excluding notable items Q116 Performance metrics Three months ended (£m) Mar-16 Dec-15 Mar-15 • As expected, loss before tax increased to £815m, driven mostly by a fair value loss of £374m on ESHLA (Q415: loss of £156m) – Businesses 196 229 3
Slide 14: Non-Core: Rundown progression
Non-Core: Rundown progression RWAs by type (£bn) Leverage exposure by type (£bn) (43%) (57%) 316 89 23 50 22 54 51 127 149 136 33 11 11 12 10 25 26 22 20 c.20 70 24 116 63 11 10 9 10 10 42 37 Dec-14 Dec-15 Mar-16 2017 Dec-14 Dec-15 Mar-16 Guidance Operational risk 1 Securities & loans Derivatives Bu
Slide 15: Managing capital position for regulatory minimum levels
Managing capital position for regulatory minimum levels Capital requirements Future CET1 ratio1 = Regulatory minimum level + c.1-1.5% management buffer Current expected regulatory c.1-1.5% Management buffer minimum level: 11.7%5 Stress buffer6 (including 0.5% management buffer): c.4-4.5% Q116 CET1:
Slide 16: Financial highlights
Financial highlights Underlying Core RoTE of 10.7%, driven by Barclays UK RoTE of 20.5% and Barclays Corporate & International RoTE of 9.5%1 CET1 ratio of 11.3% and leverage ratio of 4.3% – on track to meet end-state capital requirements, with capital benefits from strategic actions to come through
Slide 17: Barclays PLC Q1 2016 Financial Results
Barclays PLC Q1 2016 Financial Results 27 April 2016
Slide 18: Appendices
Appendices
Slide 19: Transatlantic Consumer, Corporate & Investment Bank
Transatlantic Consumer, Corporate & Investment Bank Barclays PLC Africa Barclays UK Barclays Corporate & International Non-Core Banking Focused UK consumer Diversified transatlantic and business bank with scale wholesale and consumer bank Personal Banking Barclaycard Consumer UK Corporate & Investme
Slide 20: Business level analysis of Barclays UK and Barclays Corporate & International
Business level analysis of Barclays UK and Barclays Corporate & International Barclays UK – Q116 Barclays Corporate & International – Q116 Income by business (£m) Impairment by business (£m)1 Income by business (£m) 393 42 919 491 105 917 1,408 Loans and advances to customers by business Customer de
Slide 21: RWAs by risk type and division
RWAs by risk type and division Group RWAs (£bn) by risk type – Mar-16 Group RWAs (£bn) by division – Mar-16 £363bn £363bn Market risk: 9% 34 401 Head Office: 11% Counterparty credit risk: 10% 35 51 Non-Core: 14% Operational risk: 16% 57 70 Barclays UK: 19% Credit risk: 65% 236 202 Barclays C&I: 56%
Slide 22: Head Office and Africa Banking summary financials
Head Office and Africa Banking summary financials Africa Banking Three months ended – Business performance excluding notable items Mar-16 Mar-15 % change (£m) Head Office –Three months ended (£m) Mar-16 Mar-15 Income 818 908 (10%) Impairment (111) (91) (22%) Income 76 14 Total operating expenses (47
Slide 23: Tangible Net Asset Value
Tangible Net Asset Value TNAV (pence per share) – Dec-15 to Mar-16 Q116 highlights TNAV per share increased 11p in the quarter to 286p 3 • Profits generated contributed 3p per share 5 • A 6p per share improvement in TNAV resulted from a £1.2bn 286 increase in the cash flow hedging reserve, driven by
Slide 24: Stable CRLs in proportion to gross L&A reflecting prudent credit risk management
Stable CRLs in proportion to gross L&A reflecting Barclays prudent approach to credit risk management Strong coverage of Group Credit Risk Loans (CRLs) and Retail CRL % of Gross L&A1 stable Loan Loss Rate (LLR)1 Dec-15 Mar-16 CRLs % of Gross L&A Loan loss rate 65% CRL coverage 63% 8.4% 7.4% 1.6% 1.5
Slide 25: Strong CET1 and leverage ratio trajectory
Strong CET1 and leverage ratio trajectory Fully-loaded CET1 ratio1 220bps • CET1 ratio of 11.3% as at 31 March 2016, an improvement of Cumulative 220bps since December 2013 conduct − After absorbing a cumulative c.150bps impact of notable and litigation conduct and litigation items c.150bps since De
Slide 26: Movement in Common Equity Tier 1 capital
Movement in Common Equity Tier 1 capital CET1 capital movement3 (£bn) – Dec-15 to Mar-16 0.1 0.2 0.6 0.5 0.2 0.5 0.1 40.7 40.9 Dec-15 Profit for Dividends Other Net impact of Additional Goodwill and Other 2 Mar-16 the period 1 paid and qualifying retirement value adjustments intangible foreseen rese
Slide 27: Managing evolving future minimum CET1 levels
Managing evolving future minimum CET1 levels Illustrative evolution of minimum CET1 requirements and buffers1 Minimum CRD IV CET1 requirement Counter Cyclical Buffer (CCyB) assumption3 CET1 minimum levels and internal management buffer 2016 Pillar 2A CET1 requirement2 Mandatory distribution restrict
Slide 28: Managing capital position for regulatory minimum levels and stress testing
Managing capital position for regulatory minimum levels and stress testing Barclays’ expected systemic reference points for BoE stress test1, 2 Minimum CRD IV CET1 requirement Counter Cyclical Buffer (CCyB) assumption4 2016 Pillar 2A CET1 requirement3 Mandatory distribution restrictions hurdle5 G-SI
Slide 29: Leverage ratio decreased to 4.3% due to seasonality
Leverage ratio decreased to 4.3% due to seasonality Leverage exposure1 (£bn) Highlights L&A and other assets2 Derivatives Q1 2016 SFTs Undrawn commitments • Decrease in leverage ratio to 4.3% primarily driven by an increase in Leverage ratio1 leverage exposure • Leverage exposure increased by £54bn,
Slide 30: Well positioned to meet future MREL/TLAC requirements
Well positioned to meet future MREL/TLAC requirements Illustrative annual MREL/TLAC issuance volumes to meet future requirements1 23% • Proactive refinancing from HoldCo and liability management TLAC requirement exercises executed to date position us well for future +1.5% requirements c.£6bn p.a. mg
Slide 31: Barclays PLC parent company accounts
Barclays PLC parent company accounts Barclays PLC parent company balance sheet Key notes Balance sheet • Barclays PLC is the holding company of the Barclays Group As at As at • The HoldCo’s primary assets currently are its investments in, and loans and 31 Dec-15 31 Mar-16 advances made to, its sole
Slide 32: Maintaining a robust liquidity position and well diversified funding profile
Maintaining a robust liquidity position and well diversified funding profile High quality liquidity pool (excluding BAGL) (£bn) Robust liquidity position LCR1 • Stable liquidity position with the Group liquidity pool at £132bn, providing a 124% 133% 129% surplus to internal and external minimum requ
Slide 33: Continued progress on transition to HoldCo capital and funding model
Continued progress on transition to HoldCo capital and funding model PRA transitional regulatory capital Outstanding term vanilla senior unsecured debt (£bn) Dec-15 Mar-16 (£bn) Dec-15 Mar-16 PRA transitional Common Equity Tier 1 capital 40.7 40.9 Barclays PLC (HoldCo) term vanilla senior unsecured
Slide 34: Continue to access diverse wholesale funding sources
Continue to access diverse wholesale funding sources across multiple products, currencies and maturities Wholesale funding by product1 Key messages Deposits from banks • Overall funding requirements for the Group have reduced as we have 5% 11% CDs and CPs de-levered the balance sheet. Total wholesal
Slide 35: Wholesale funding composition
Wholesale funding composition1 >1 month >3 months >6 months >1 year >2 year >3 year >4 year Total As at 31 March 2016 (£bn) ≤1 month but ≤3 but ≤6 but ≤12 ≤1 year but ≤2 but ≤3 but ≤4 but ≤5 >5 years Total months months months years years years years Barclays PLC Senior unsecured MTNs - - - - - 0.7
Slide 36: Disclaimer
Disclaimer Important Notice The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer to sell or solicitation of any offer to buy any securities or financial instruments, or any advice or recommendation with re