Barclays Plc · LSE:BARC
Barclays — Investor Day (June 2011)
41 slides from Barclays's investor day presentation, Jun 15, 2011
Slide 1: Barclays PLC 2011 Investor Seminar
Barclays PLC 2011 Investor Seminar 15 June 2011 Retail and Business Banking Africa
Slide 2: Introduction
Introduction Bob Diamond, Barclays Chief Executive
Slide 3: Execution Priorities
Execution Priorities • Capital • Returns • Income growth • Citizenship
Slide 4: Retail and Business Banking
Retail and Business Banking Antony Jenkins, Chief Executive
Slide 5: Our 2013 commitments
Our 2013 commitments Increased customer satisfaction Happy customers Relentless reduction in complaints Strong financial Solid income growth performance Positive operating jaws Returns 13-15% RoE
Slide 6: Retail and Business Banking
Retail and Business Banking PBT (£m, 2010) GRB 1,829 RBB 2,445 UK 989 UK 989 Europe (139) Europe (139) Barclaycard 791 Barclays Africa 188 Barclaycard 791 + Africa 804 Absa 616
Slide 7: Returns profile
Returns profile RBB RoE composition, pro forma at 10% CT1 RBB RWA composition (% of total, 2010) (%, 2010) UK 11% Africa UK Barclaycard 12% 31% 29% Europe 0% £123bn RWAs Africa 12% 14% 26% Barclaycard Europe Total RBB 10% 13% 2013 Barclays target
Slide 8: Strong franchise
Strong franchise Leading brand in core markets: Strong Brand • UK • Africa • Barclaycard UK Top 3 bank in 13 out of 22 countries(1) Scale c.50m customers globally Access to 60% of the global revenue pool Strong track record: First UK credit card and acquiring network First UK card company online
Slide 9: Our vision
Our vision The goal The vision The means the • Deeper impact with customers „go-to‟ bank Lives Made • Greater scale in all our markets in our chosen Much Easier markets • Higher performance
Slide 10: Driving the customer agenda for sustainable growth
Driving the customer agenda for sustainable growth Enhancing customer experience… …driving sustainable value creation Examples: Sustainable income growth Debit cards Getting the basics right Zambia Lower cost to serve Innovation through Innovation in customer insight channels and products Superior r
Slide 11: UK: Strong customer franchise
UK: Strong customer franchise Strong customer franchise Solid footprint >15m personal customers 1,658 3,345 c.3.5m branches ATMs online banking c.45% bank with us >10 years active users >700k Mass Affluent Distinctive products and channels c.80% hold 3 or more products Winner of „Transforming custom
Slide 12: UK: Delivering on commitments
UK: Delivering on commitments Productivity and innovation • Launched online investment platform >100% Mobile banking user • Successful performance in mobile banking growth (09-10) • Continued investment in multi-channel platform Business bank build out 5% • Enhanced end-to-end key customer processes
Slide 13: UK: Outpacing industry growth
UK: Outpacing industry growth Mortgage growth (%) Personal customer deposits growth (%) RBB UK RBB UK Total UK 15%(1) Total UK 13%(1) 7% 5% 2%(2) 3%(2) 0%(2) 1%(2) 2008-09 2009-10 2008-09 2009-10 2009 2010 Mortgage balances share 7.4% 8.4% Mortgage stock LTV 43% 43% (1) Includes SLB (2) Total UK dat
Slide 14: UK: Liability margins
UK: Liability margins Personal customer liability spread (%, 2008 – 2013) 0% Potential incremental income from margin Proportion Interest unwind of base rate Rate increase Spread passed on to customers 100% 2008 2009 2010 2011 2012 2013 Base rate expectations (bps) +25 +50 +100
Slide 15: UK: Efficiencies through relentless simplification
UK: Efficiencies through relentless simplification The approach Expected impact on 2010 base by 2013 15 key customer processes Customer complaints End-to-end process simplification 20-50% reduction per process Reducing waste, cycle times, £30-50m Total cost reduction operating costs and increasing c
Slide 16: UK: Commitments
UK: Commitments Income growth Solid income growth Costs Positive operating jaws Returns 14-15% RoE
Slide 17: Europe: Solid presence in challenging conditions
Europe: Solid presence in challenging conditions Customers Distribution points 2010 (m) (#) Spain 0.9 587 Portugal 0.8 279 2010 PBT: (£139m) Italy 0.8 380 France 0.2 117 Total Europe 2.7 1,363
Slide 18: Europe: Taking action to reposition the franchise
Europe: Taking action to reposition the franchise Management New leadership team in place strength Targeted strategy on higher return segments, Income growth (Premier and primary relationships) Leveraging capabilities across RBB Cost Restructuring the business and network management Impairment Upgra
Slide 19: Europe: Leveraging the opportunity - focus on Premier
Europe: Leveraging the opportunity - focus on Premier Opportunity Focus on Premier • Large retail revenue pool of >£100bn(1) Customer Income growth growth • Strategic fit and proximity to UK (09-10) (09-10) • Barclays with low shares, Spain 3% 15% but high potential to grow Portugal 39% 10% Italy 75
Slide 20: Europe: Key priorities
Europe: Key priorities Spain Portugal New management team Building on profitable cards business Significant restructuring Streamline customer experience Optimise portfolio Leverage RBB capabilities
Slide 21: Europe: Key priorities
Europe: Key priorities Italy France Reshaping and optimising portfolio Specialist Premier offering Rebalancing liquidity profile Effective use of alternative channels Growing within current network Enhance returns
Slide 22: Europe: Commitments
Europe: Commitments Income growth Good income growth Return to profit in 2012 Profitability Positive operating jaws 4-5% RoE in 2013 Returns 13% RoE by 2015
Slide 23: Barclaycard: Scale and diversified payment provider
Barclaycard: Scale and diversified payment provider PBT (%, 2010) Business Payment Products UK Consumer Credit Cards • Payment Acceptance 15% • Commercial Payments • Barclays Partner Finance 43% International Consumer Credit Cards • United States 42% • Germany • South Africa • Scandinavia JV
Slide 24: Barclaycard: Strong growth in the UK
Barclaycard: Strong growth in the UK Growth in receivables: top 5 credit cards UK players Risk trends in Barclaycard UK (%, 2009-2010) (%, 2009-2010) Growth 2010 2009 Barclaycard With Egg 26% 3.4% #1 in UK Ex Egg 7% 1 month arrears Player A (9%) 4.2% Player B (9%) 1.5% Player C (4%) 3 month arrears
Slide 25: Barclaycard: Strong growth internationally
Barclaycard: Strong growth internationally Barclaycard US Germany, Scandinavia, South Africa • Focused partnership model • Leading positions – US Air – T2 franchises – LL Bean – Consistent growth trend, – NFL 85% profit growth in South Africa • New solutions for customers • Customer solutions, e.g.
Slide 26: Barclaycard: Diversifying in business payment products
Barclaycard: Diversifying in business payment products Attractive Segment Executing on Initiatives • c.£40bn revenue segment globally, • Commercial payments extended to >7% CAGR expected to 2013 22 countries • Expanding client franchise Product economics: Business payments vs. consumer 2009 2010 RoR
Slide 27: Barclaycard: Leading in payments innovation
Barclaycard: Leading in payments innovation …To Mobile Payments From Contactless... Payments are evolving… First UK contactless cards First mobile payments …we are driving and terminals with Orange the change >90% of contactless >10 active discussions on terminals (Dec 2010)(1) further mobile launch
Slide 28: Barclaycard: Commitments
Barclaycard: Commitments Income growth Solid income growth Costs Positive operating jaws Returns 16-17% RoE
Slide 29: Africa
Africa Maria Ramos, Absa Group Chief Executive
Slide 30: Africa is large and growing
Africa is large and growing Africa is ... Revenue pool in our African countries • Population of over 1bn Consumer Large • Collective GDP of $1.7tr Commercial last year £bn 60 13% compound annual growth • GDP of $2.4tr expected 50 High growth by 2015 40 • Low loans to GDP 30 • High proportion of adul
Slide 31: We have a leading, well established presence
We have a leading, well established presence Presence Share by Rank by since Assets (%) Revenue Egypt Egypt 1864 2 12 South Africa 1888 22 2 Zimbabwe 1912 9 4 Tanzania 1916 18 3 (1) Uganda Ghana 1917 4 2 Ghana Kenya Zambia 1918 10 1 Seychelles Mauritius 1919 11 3 Tanzania Kenya 1925 12 1 Mozambique
Slide 32: That generates meaningful revenues and profits
That generates meaningful revenues and profits Barclays African revenue (£bn) Barclays African pre-tax profit (£bn) 5.0 1.2 +17% 4.0 1.0 +55% 0.8 3.0 0.6 2.0 0.4 1.0 0.2 0.0 0.0 FY09 FY10 FY09 FY10 Source: Barclays
Slide 33: Innovating to grow retail and business banking
Innovating to grow retail and business banking Strong growth in African mobile phone banking customers (m) 3.0 2.5 2.0 >10x 1.5 Best Islamic Financial Institution Middle 1.0 East/Africa (non-GCC) 2009/10/11 0.5 0.0 2006 2007 2008 2009 2010 Source: Barclays
Slide 34: Capturing the wholesale flows
Capturing the wholesale flows Barclays Capital has transformed Absa‟s trading capability Absa Capital Markets revenue (£m) Foreign Implemented BARX 350 exchange 69% average QoQ growth 300 250 FTSE companies 200 Corporate Bank SA corporates >5x Multinationals 150 100 50 Payments Building cross border
Slide 35: Bancassurance – good growth prospects
Bancassurance – good growth prospects Absa Financial Services RoE (Rand) African insurance premiums to GDP (2010) 45% 8% 16.7% 40% 7% 6% 35% 5% 30% 4% 25% 3% 20% 2% 15% 1% 0% 10% Kenya Ghana Uganda Botswana Mozambique Zambia Mauritius South Africa Tanzania Egypt Zimbabwe 5% 0% 2006 2007 2008 2009 20
Slide 36: Deep risk management capability
Deep risk management capability African loan loss rate African margin on average assets 2.5% 4.0% 2.0% 3.5% 1.5% 3.0% 1.0% 2.5% 0.5% 2.0% FY09 FY10 FY09 FY10 Source: Barclays
Slide 37: Ambitious One Africa targets
Ambitious One Africa targets Double digit growth Income growth Focus on non-interest revenue Cost to income ratio improving, Costs while continuing to invest RoE >13% Returns RoRWA >2% Figures for “One Africa” include RBB Africa, Absa Capital, Absa Wealth and Absa cards
Slide 38: Retail and Business Banking
Retail and Business Banking Antony Jenkins, Chief Executive
Slide 39: Clear roadmap to drive income growth
Clear roadmap to drive income growth Expected income growth (2010-2013) Key drivers CAGR 4-5% • Product and segment share growth • High growth opportunities • New sources of income from product innovation • Stable net interest margin 2010 2013
Slide 40: Delivering 13-15% RoE
Delivering 13-15% RoE RBB RoE composition(1) (%, 2013 Targets) UK Three of the four Barclaycard businesses above 13% RoE target by 2013 Europe 13% target by 2015 All businesses above target by 2015 Africa RoTE above 20% Total RBB 13%-15% 13% 2013 Barclays target (1) Based on allocated tangible equit
Slide 41: Our 2013 commitments
Our 2013 commitments Increased customer satisfaction Happy customers Relentless reduction in complaints Strong financial Solid income growth performance Positive operating jaws Returns 13-15% RoE