Barclays Plc · LSE:BARC
Barclays — IPO Roadshow (May 2016)
54 slides from Barclays's IPO roadshow presentation, May 5, 2016
Slide 1: Barclays PLC Fixed Income Investor Presentation Q1 2016
Free Writing Prospectus Filed Pursuant to Rule 433 Reg-Statement No. 333-195645 Barclays PLC Fixed Income Investor Presentation Q1 2016 Results Announcement 27 April 2016
Slide 2: Strategy & Performance Overview
STRATEGY &Strategy MREL/TLAC HOLDCO & Performance CAPITAL STRUCTURAL Overview LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 3: Strategy and Q1 2016 overview
STRATEGY MREL/TLAC wholesale legacy reduce timeframe headwinds simplification business 3 |& Barclays Management HOLDCO rundown bank ofQ1 the with CAPITAL 2016 provided 62.3% focus scale Fixed tostake and deliver Accelerate STRUCTURAL Income consumer in Barclays value Investor Non-Core bank Transatla
Slide 4: Q1 2016 financial highlights
STRATEGY MREL/TLAC track completion Barclays to meet Q1of2016 & end-state announced Financial HOLDCO Fixedcapital highlights Income sales CAPITAL requirements, Continued Investor Underlying STRUCTURAL Presentation focus with Core oncapital reducing RoTE LIQUIDITY benefits ofcosts 10.7%, from and PER
Slide 5: Group financial results
STRATEGY MREL/TLAC Impairment(443)(386)(15%) expenses(3,825)(4,106) mostly expenses the (80)(30%) income, earnings credit(109) higher Provisions Non-controlling average relating Return per reduced Group for 128 share &UK Statutory tangible to HOLDCO on Income PBT by the 2.7p customer average interes
Slide 6: Core performance
STRATEGY MREL/TLAC (20%) measures share liability tax 2% structural average lower resilient Presentation (m) to6.3p fee 5,392m, Operating Mar-16 allocated -CIB 429 excluding income, reform 7.3p &income Provisions Core: excluding HOLDCO Mar-16 Mar-15% implementation expenses(3,258)(3,047)(7%) equity
Slide 7: Non-Core performance
STRATEGY MREL/TLAC increased value Q116 reductions tangible Portuguese businesses, months Impairment Derivatives(36)(102)(14) Impairment(29)(32)(41) ended equity toinretail resulting of 815m, & the Mar-16 Non-Core: goodwill 9.0bn HOLDCO derivatives business driven in 9.7bn Dec-15 additional and Cont
Slide 8: 8 | liQUiditffi iNVESTOR Q315
8 | liQUiditffi iNVESTOR 11 14 Q315 rESTRUCTURING 10 dEC-15 33 Q415 22mAR-16 (242) 20 PRESENTATION &22FUndinG sECURITIES 11COSTS sECURITIES 11 dEC-14 ¢redit 187231-001 nON-¢ORE: & dEC-15 ratinG & LOANS LOANS aPPendifl mAR-16 04May16 dERIVATIVES rUNDOWN dERIVATIVES strateGffi 2017 14:10GUIDANCE PROGR
Slide 9: Capital & Leverage
STRATEGY &Capital MREL/TLAC HOLDCO & Leverage CAPITAL STRUCTURAL LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 10: Strong CET1 ratio and capital position
STRATEGY MREL/TLAC impact quarter increased calculation seasonality of CET1 by notable basis driving 4.7bn, &capital Strong HOLDCO and conduct higher mainly seasonal was CET1up settlement and CAPITAL driven and 0.1bn Q116 litigation leverage by toincreases balances, FX STRUCTURAL 40.9bn items as rat
Slide 11: Accelerated rundown of Non-Core
STRATEGY MREL/TLAC Accelerated stress test hurdles rundown &Confident HOLDCO 11 | of Barclays Non-Core, inCAPITAL our FY ability 2015 high-returning STRUCTURAL to Fixed accreteIncome capital businesses LIQUIDITY Investor going2forward guiding Presentation PERFORMANCE 1toCore RWAs Slide divisions ofa
Slide 12: Managing CET1 position and requirements
STRATEGY MREL/TLAC RWAs is restrictions actions held Pillar Income prudently in2A will CET1 with Investor requirements evolve incalibrated, aim &form stress Managing HOLDCO Presentation toover Despite reduce event Updated intended time, evolving Barclays CAPITAL the 2016 we G-SIB planning to manage
Slide 13: CET1 buffers and stress test
STRATEGY MREL/TLAC Buffer tests17 P2A, stress Presentation and buffer (CCyB) Future a phased-in is&CET1 Managing expected assumption15 HOLDCO ratio13 G-SIB tocapital CAPITAL be= buffer 2016 c.4-4.5% Regulatory position Pillar The STRUCTURAL when stressed for 2A minimum regulatory CET1 including capi
Slide 14: RWAs by risk type and division
| LIQUIDITFFI STRU¢TURAL TYPE CREDIT OF GROUP AND RISK: DIVISION RFIAS & REFORM 10$ FUNDING MARKET MARKET £363BN BARCLAYS ¢REDIT RISK: RISK: GROUP£23BN 9$ RATING FFFI BARCLAYS RFIAS ¢OUNTERPARTY 2015 APPENDIFL (£BN) FIXED ¢&I: BYINCOME RISK 56$ STRATEGFFI BARCLAYS CREDIT TYPE INVESTOR – RISK: MAR-16
Slide 15: Leverage ratio and exposure
| LIQUIDITFFI STRU¢TURAL 4.5$ PRIMARILY BALANCES FURTHER CALCULATE THE EXPECTED 4.3$ AVERAGE LEVERAGE PROGRESS TO AND DRIVEN AN & REFORM BE LEVERAGE FUNDING AVERAGE FFL, BELOW EXPOSURE21 BYON WHILE BARCLAYS AN RUNDOWN 4$ ¢REDIT RATIO LEVERAGE INCREASE 1,082 FULLY-LOADED WAS (£BN) 1,233 RATING FFFI R
Slide 16: Holding company transition and MREL/TLAC
STRATEGY &Holding MREL/TLAC HOLDCO company CAPITAL transition STRUCTURAL and MREL/TLAC LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 17: MREL/TLAC requirements
STRATEGY MREL/TLAC buffer January 2020. period Income Ahead requirement Indicative Investor 2016of &MREL, TLAC HOLDCO that, Presentation future BoE G-SIBs and if MREL set Recapitalisation MREL CAPITAL atare applicable requirement expected requirement STRUCTURAL regulatory amount to expected beexpect
Slide 18: MREL/TLAC issuance and management
STRATEGY MREL/TLAC management potential January Further requirement, Presentation CET1 2022, disqualification & shifts exercises accretion on Well HOLDCO top in positioned of the executed which and of various CAPITAL OpCo planned we totocomponents meet expect legacy date intentions STRUCTURAL future
Slide 19: Barclays PLC and Barclays Bank PLC regulatory capital
| BARCLAYS MREL/TLA¢ 3.9 REGULATORY (HOLD¢O) 0.9 1.3 0.9 1.8¢APITAL Q1 0.7 1.9 CAPITAL 2016 2.4 –BARCLAYS 2016 FIXED & LEFFERAGE 11.9 2017INCOME 11.0 2018 BANK –BARCLAYS 2019 ASSET PL¢ INVESTOR 2020 (OP¢O) QUALITFFI 2021 PL¢ PRESENTATION 12.0 2022 (HOLD¢O) 12.5 2023+(£BN) STRU¢TURAL PRA5.3 TRANSITIO
Slide 20: Illustrative loss absorption waterfall
| Barclays Stru¢tural UNSECURED EQUITY33 ILLUSTRATES GROUP OF INVESTORS EXTERNAL HOLD¢O investments HIERARCHY STEPINTERCOMPANY 2 IS ISQ1 WATERFALL reform ALLOCATED RETAINED the IN AND 2016 IN the INVESTMENT op¢O ILLUSTRATIVE THAT ACCORDANCE UK holdcos INTERNAL FIXED HOLD¢O APPROACH THE ARRANGEMENTS
Slide 21: Barclays PLC parent company balance sheet
STRATEGY MREL/TLAC primary committed sheet the 1,861 period. Shareholders Share instruments within 48,720 parent isrepresents premium the 21 Other expected assets company |Retained to Barclays 5,321 & equity issuing liabilities Barclays currently HOLDCO account investments to5,321 increase earnings
Slide 22: Structural Reform
STRATEGY &Structural MREL/TLAC HOLDCOReform CAPITAL STRUCTURAL LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 23: Simplifying business and structural reform
STRATEGY MREL/TLAC Delivering would support entities &Simplifying solid HOLDCO with investment strong CAPITAL our returns business grade STRUCTURAL ratings and divisions well 23balanced | Barclays for structural LIQUIDITY funding Q1 2016 reform profiles PERFORMANCE Fixed Formation Legal Income const
Slide 24: Funding sources and entities
STRATEGY MREL/TLAC UK sources: International -downstreamed Fixed Short-term consumer Income FY15 funding &wealth Investor and Anticipated LDR: -HOLDCO Secured Diversified customer (e.g. 94% Presentation funding CD/CP) Funding CAPITAL funding deposits transatlantic (e.g. senior sources sources: STRUC
Slide 25: Liquidity & Funding
STRATEGY &Liquidity MREL/TLAC HOLDCO & CAPITAL Funding STRUCTURAL LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 26: Liquidity pool and loan-to-deposit ratio
Dec-14 POOL CENTRAL SOVEREIGNS IN (EXCLUDING TERM deposit PUBLIC SENIOR ACROSS ORDER AT DEBT ratio dec-15 AND UNSECURED CURRENCIES, £132BN, BANKS TO (ldr) AND mar-16 PRIVATE bagl) illustrating MAINTAIN AND PROVIDING OTHER AND (£BN) ¢ASH THE DEBT SENIOR HIGH MATURITIES OUR l¢r37 AN ldr DEPOSITS & IN
Slide 27: Funding maturities and requirements
STRATEGY MREL/TLAC requirements 13% commitment includes: Group across maturing 33% - 56bn 18% 8bought instruments in Other 8%2016 matures to &for As back Continue transition HOLDCO - the c.4bn at and5.3bn 31 in Group 25% 8%December less equivalent toto > of CAPITAL access than have aoutstanding h
Slide 28: Asset Quality
STRATEGY &Asset MREL/TLAC HOLDCO qualityCAPITAL STRUCTURAL LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 29: Credit risk loans and impairment coverage
| barclays reform REFLECTING WHEN CONTRACTUALLY STILL GROSS STABLE PERFORMING 1.5$ EVIDENCE LOANS loan Q13.3$ 2016 loss barclays 1.7$ AND rate FIXED OF OVERDUE 7.4$ ADVANCES (llr)42 BUT PRUDENT DETERIORATION income 2.1$ HAVE 291.4$ 3.9$ 90 investor ASSOCIATED APPROACH ¢rl 3.8$ DAYS 0.8$ COVERAGE 1.8
Slide 30: Wholesale oil and gas exposures
STRATEGY MREL/TLAC wholesale balance Weak at grade experienced clients Satisfactory sheet credit & impairment investment Limited counterparties HOLDCO exposures44: collateralised oilof grade and CAPITAL 17% with Our gas clients reserve Refining exposures established exposure STRUCTURAL Strong based
Slide 31: Level 3 assets
STRATEGY MREL/TLAC 2016 Fixed Income &Level HOLDCO Investor 3 assets CAPITAL Presentation at 31 December STRUCTURAL 2015 Level LIQUIDITY 3 assets (bn) PERFORMANCE Other Available TRANSITION for Sale investments ASSET Derivative QUALITY financial CREDIT assets RATING Financial APPENDIX assets designa
Slide 32: Credit Ratings
STRATEGY &Credit MREL/TLAC HOLDCOratings CAPITAL STRUCTURAL LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 33: Credit ratings and outlook
STRATEGY MREL/TLAC outlook influencing Implications 1increase F1 T2 across CoCos in thickness rating for &Focused S&P, HOLDCO BB+ senior agencies Moodys -ofBBB- HoldCo on themaintaining CAPITAL reassessments senior UT2 Standalone debt BB+ HoldCo asSTRUCTURAL strong aBa1 result rating of layer BBB th
Slide 34: Rating agency methodology: senior debt
| BARCLAYS MREL/TLA¢ ALONE ENVIRONMENT STRATEGY FACTORS QUALIFYING LONG-TERM SHORT-TERM RATING ADDITIONAL A+ ¢APITAL Q1 BAA3 JUNIOR P-1 TO 2016 AA STAND-ALONE OP¢O A-HOLD¢O TO RISK FIXED &DEBT A+ SENIOR LEFFERAGE FACTORS POSITION BUSINESS INCOME 0SENIOR GOVERNMENT SHORT-TERM ¢REDIT NOTCHING ASSET 0I
Slide 35: Rating agency methodology: subordinated debt
| BARCLAYS MREL/TLA¢ STAND-ALONE AT1 -2 RISK NOTCHING OUTLOOK -1 T2 -1-2-2 ¢OCO -1BAIL-IN -2STABLE -1 ¢APITAL MODEL-BASED Q1 UT2 -5RATING 2016 -4LT2 FEATURE -3 OUTLOOK FIXED -1 &T1-4/-5 LEFFERAGE STAND-ALONE T2 AT1 INCOME -1 LIABILITY OUTCOME -1 STABLE T2 -1 ¢OCO -1ASSET INVESTOR -1 RATINGS -1 ¢REDI
Slide 36: Appendix
STRATEGY &Appendix MREL/TLAC HOLDCO CAPITAL STRUCTURAL LIQUIDITY PERFORMANCE TRANSITION ASSET QUALITY CREDIT RATING APPENDIX & LEVERAGE REFORM & FUNDING OVERVIEW &
Slide 37: Guidance and dividend intentions
STRATEGY MREL/TLAC negative c.400m Barclayswith income Q1 2016 expectation &One-time HOLDCO and Fixed costs increase Income toCAPITAL inpay 2016 out Investor toaccelerated aNon-Core: significant STRUCTURAL Presentation rundown, 2017 - Majority RWA LIQUIDITY Slide weguidance ofintend asthese presente
Slide 38: Africa Banking sell-down
STRATEGY MREL/TLAC down buffer, Africa Presentation FY15 Banking MREL/TLAC returns Slide &Intention HOLDCO Goodwill as(%) presented and100% toAfrica other CAPITAL reduce financial at 3.0 Banking the 62.3% 11.7 FY STRUCTURAL responsibility regulatory stake 2015 RoE results in RoTE Barclays requiremen
Slide 39: UK-focused consumer and business banking
| Barclays Stru¢tural RELATIONSHIPS INNOVATION UK STARTUPS49 Q1 reform 2016 Barclaycard Barclays #2 AND FIXED UKDRIVING WEALTH UK: income UK FOCUSED 11 investor MILLION HIGHER MANAGER50 UK PRESENTATION RETURNS UK CONSUMER CUSTOMERS Business driving AND banking Liquiditffi INCREASED #1BUSINESS UKAND
Slide 40: Corporate and international strengths
| barclays reform REACH TRANSACTIONAL #2 LOANS52 THE MERCHANT Fybarclays 2015 strong Q1¢ORPORATE 2016 RESULTS GROWTH ¢ORPORATE ACQUIRER FIXED BANKING ANNOUNCEMENT AND income POTENTIAL IN &investment NEEDS international: europe53 investor ACROSS scale bank PRESENTATION C.£300BN ON diversified AND #51
Slide 41: Income by business
STRATEGY MREL/TLAC (£m)56 Consumer Income UK&Business Wealth, HOLDCO by business Entrepreneurs level CAPITAL (£m) analysis 393 STRUCTURAL & 42 ofBusiness Barclays 919 491 105 Banking UK 917 LIQUIDITY and 1,408 Barclays Consumer, Loans PERFORMANCE Corporate Cards and advances &&Payments International
Slide 42: Barclays UK performance
STRATEGY MREL/TLAC PBT Operating operating cost average Loan competition digital Mar-15 customer Aprilreductions declined loss 2016 channel Card tangible redress expenses(953)(946)(1%) rate expenses(952)(945)(1%) reduced & spend slightly (LLR) Barclays adoption from HOLDCO equity -(167) value margin
Slide 43: Barclays UK income
STRATEGY MREL/TLAC Improvement 345(12%) - Barclaycard &inBarclays HOLDCO savingsUK: UK margins CAPITAL impacted Stable offset income STRUCTURAL by byEU continued oninterchange increased mortgage LIQUIDITY customer fee regulation Netbalances interest PERFORMANCE excluding income IncomeTotal 1,501 (m)
Slide 44: Digital banking and payments
STRATEGY MREL/TLAC Payments lending hasand a& cost transfers Barclays HOLDCO to income £13.3bn UK: CAPITAL ratio Digital £16.1bn in is the STRUCTURAL Barclays low £19.0bn 20sbiggest 44 £25.4bn | Barclays LIQUIDITY branch (monthly) Q1 Personal 2016 PERFORMANCE Unsecured Fixed Banking Income lending Q
Slide 45: Barclaycard and Corporate & International
STRATEGY MREL/TLAC 3,513m representing increasing structural 575m Credit restructuring Cards months Q1 2016 Attributable & performance ended through Payments Financial reform to continued & costs 50bps Mar-16 Barclays HOLDCO diversification implementation profit and Results (CC&P) largely (+46%) Mar
Slide 46: Investment Bank performance
STRATEGY MREL/TLAC challenging 513 single 408 Total our lower impacted Grade Strong US 589(13%) 413(1%) operating client name debt balance Return Banking (from conditions activity exposures &and Corporate -on growth expenses(1,800)(1,700)(6%) HOLDCO Banking #2) appreciation average fees, Equities an
Slide 47: Consumer, Cards and Payments
STRATEGY MREL/TLAC income Total measures by value deposits business 10%operating ofgrowth largely 11.7bn (bn) processed excluding & Barclaycard Consumer, of expenses(425)(414)(3%) due HOLDCO in 24% Q116, payments to notable growth including up Cards Germany CAPITAL items 11% to inthe &net favourable
Slide 48: Performance summary
STRATEGY MREL/TLAC ended (34) Attributable weighted discontinued 27 April – (£m) Litigation 2016 assets Mar-16 profit & operation Head HOLDCO £33.9bn and (15) Mar-15 Office conduct –(34) £31.7bn Losses CAPITAL and Income Performance (7)Africa on (1) Notable sale 818 Profit STRUCTURAL Banking relatin
Slide 49: Funding composition
49- LEVERAGE STRATEGY CAPITAL PERFORMANCE & OVERVIEW Wholesale >1 As Barclays Deposits -unsecured (public Senior 64 1.3 Total -0.5 1.4 |month at 0.5 Barclays - as -31 2.1 1.8 unsecured -0.7 1.2 benchmark) at 0.1 March PLC from >3 3.5 2.1 MTNs 31 STRUCTURAL 0.1 funding 0.5 -&months Q1 & 0.1 December
Slide 50: Contact – Debt Investor Relations
Contact – Debt Investor Relations daniel.colvin@barclays.com Website: Team barclays.com/barclays-investor-relations.html Lisa Bartrip Sofia Lonnqvist Dan Colvin +44 50(0)20 | Barclays 7773 Q1 0708 2016 +44Fixed (0)20Income 7116 5716 Investor +44 (0)20 Presentation 7116 6533 lisa.bartrip@barclays.com
Slide 51: Footnotes
Footnotes other Africa, assets The effective numerator 10.5% proposals, P2A subject requirement) consolidated depending assumed January discretionary reference changes buffers Tier with (i)FSBs Englands proposals 2016 HoldCo FL Bank maturity no losses down/conversion of segmented Plans differ the Ba
Slide 52: Important Notice
Disclaimer any statements readers looking continue, guidance (including connection of uncertainty evolving provisions, following macroeconomic market countries and in our Kingdom events the capital annual securities factors Groups or exposures; that statements. practices regarding otherwise. (includ
Slide 53: Disclaimer (continued)
Disclaimer of documents Barclays provide detail in the measures http://www.sec.gov/Archives/edgar/data/312069/000119312516558436/d137677dex991.htm) excluding issue. Segments, reconciliation months eliminate Regulation which securities IFRS concerning The ended valuable operating Capital measures the
Slide 54: Disclaimer (continued)
Disclaimer guidelines Funding is October a2012, and items. Underlying tax controlling Form provided performance net retirement |provisions Barclays Transitional subject excludes for of April 6-K; assuming insurance The the 2012. Ratio, on 10, to Q1 benefit period released for comparable Underlying (