Slide 1: FY 2023 Results Announcement
FY 2023 Results Announcement 20th February 2024
Slide 2: Delivering against guidance
Delivering against guidance Barclays FY 2023 Results February 2024 2 Achieved guidance Strong balance sheet Enabled increased across metrics and earnings shareholder distributions 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 CIR (guida
Slide 3: FY23: Group RoTE of 10.6% with profit before tax of £7.5bn
FY23: Group RoTE of 10.6%1 with profit before tax of £7.5bn1 Barclays FY 2023 Results February 2024 3 Performance Profit before tax2 (£bn) £25.4bn £16.0bn1 FY22 RoTE: FY23 FY23 RoTE: Income Costs 11.6%2 Statutory 10.6%1 FY22: £24.7bn2 FY22: £15.8bn2 Statutory RoTE: RoTE: 9.0% 10.4% 63%1 £9.4bn1 0.7
Slide 4: FY23 Group income up 3% YoY
FY23 Group income up 3%1 YoY Barclays FY 2023 Results February 2024 4 Group income excluding the impact of the Over-issuance of Securities1 (£bn) +£714m | +3%1 Group 25.4 24.7 21.6 21.8 21.9 +£328m | +5% Barclays UK2 7.3 7.6 • Rates and structural hedge benefits partially offset by product dynamics
Slide 5: FY23 Group NII of £12.7bn; up 20% YoY
FY23 Group NII of £12.7bn; up 20% YoY Barclays FY 2023 Results February 2024 5 NII is half of Group income, of which BUK is half of Group NII Group NIM1 3.42% 2.94% 2.93% 3.54% 3.98% Group net interest income (bn)2 12.7 +£2,137m | +20% Group 10.6 • NIM: 3.98%1 (+44bps YoY) 9.4 8.1 8.1 6.4 +£538m | +
Slide 6: Meaningful structural hedge income uplift YoY
Meaningful structural hedge income uplift YoY Barclays FY 2023 Results February 2024 6 Gross hedge income expected to continue to grow 4.1% Spot 4.0%2 GBP 5yr 0.7% 1.0% 0.0% 3.4% swap rate1 Average 1.1% 1.5% 0.9% 0.7% 0.9% hedge yield3 £3.8bn already 3.6 locked-in for FY244 Gross hedge 2.2 income (£
Slide 7: Costs remained well managed despite inflationary headwinds
Costs remained well managed despite inflationary headwinds Barclays FY 2023 Results February 2024 7 Group operating expenses excluding the impact of the Over-issuance of Securities1 and Q423 structural cost actions2 (£bn) Group CIR 57% 63% 63% 71%2 63%1 63%2 Operating costs and Bank Levy excluding L
Slide 8: Q423 structural cost actions to improve future returns
Q423 structural cost actions to improve future returns Barclays FY 2023 Results February 2024 8 Q423 Structural Cost Actions of £927m Expect savings of c.£500m in 2024, with a payback of <2 years £340m People People £340m • Rightsizing headcount HO £453m o £79m BUK, £71m CC&P, £188m CIB Property £22
Slide 9: LLR of 46bps; maintaining through the cycle guidance of 50-60bps
LLR of 46bps; maintaining through the cycle guidance of 50-60bps Barclays FY 2023 Results February 2024 9 Balance sheet provisions for Credit impairment charges (£m) Loan loss rate (bps) ECL1 (£bn) 1,881 6.3 6.2 6.3 Off- 304 BUK balance 0.5 0.6 0.5 sheet 138 1,220 286 On- balance 5.7 5.7 1,525 CC&P
Slide 10: Higher delinquencies in US Cards in line with market trend
Higher delinquencies in US Cards in line with market trend Barclays FY 2023 Results February 2024 10 Actual loss experience limited with reserve build for anticipated increase 30 days delinquencies 2.7% 2.9% 2.2% 2.3% 2.4% 2.0% 1.6% 1.4% Loan loss rate1 (bps) Forecast LLR to 259 179 257 337 515 411
Slide 11: Q423 income of £5.6bn with profit before tax of £1.0bn
Q423 income of £5.6bn with profit before tax of £1.0bn1 Barclays FY 2023 Results February 2024 11 Performance Profit before tax (£bn) Q422 Q423 Q423 £5.6bn £4.0bn1 RoTE: 8.9% History of Q4 income Statutory RoTE: 5.1%1 Income Costs 5.8 5.6 5.3 4.9 5.2 RoTE: (0.9)% Q422: £5.8bn Q422: £4.0bn Q419 Q420
Slide 12: Barclays UK delivered 19.7% RoTE in Q423
Barclays UK delivered 19.7%1 RoTE in Q423 Barclays FY 2023 Results February 2024 12 Performance Income (£bn) RoTE: consistent profitability -9% £1.8bn £1.0bn1 -6% excluding UK 22.1% 18.7% 20.0% 20.9% 21.0% 19.7%1 Income Costs Wealth transfer 18.4% 15.6% Q422: £2.0bn Q422: £1.1bn 2.0 1.9 1.8 57%1 £37
Slide 13: Q423 Barclays UK deposit trends improved, driving FY23 NIM of 3.13%
Q423 Barclays UK deposit trends improved, driving FY23 NIM of 3.13% Barclays FY 2023 Results February 2024 13 BUK deposit balances and mix (£bn) Net interest margin • Deposit outflows materially slowed in Q423 Barclays UK NIM 3.18% 3.22% 3.04% 3.07% -£4.5bn -£6.6bn -£2.1bn Q123 Q223 Q323 Q423 254 25
Slide 14: Acquisition of Tesco Bank Retail Banking
Acquisition of Tesco Bank Retail Banking Barclays FY 2023 Results February 2024 14 £bn 8.3 • Expected completion H224 with initial Consumer annualised NII of c.£400m 4.1 Loans • Initial integration costs but broadly neutral 6.7 Credit to Group cost: income ratio Cards 4.2 • Risk profile consistent w
Slide 15: CC&P Q423 RoTE decline driven by impairment build
CC&P Q423 RoTE decline driven by impairment build Barclays FY 2023 Results February 2024 15 Performance Income (£bn) US Cards end net receivables ($bn): seasonal growth in Q423 +6% £1.4bn £0.8bn1 +2% excluding Income Costs UK Wealth transfer Q422: £1.3bn Q422: £0.8bn 1.4 1.4 1.3 29 29 29 30 32 26 27
Slide 16: CIB Q423 RoTE decline driven by lower income
CIB Q423 RoTE decline driven by lower income Barclays FY 2023 Results February 2024 16 Performance Income (£bn) Income by business (£m) USD YoY % YoY % £2.4bn £2.1bn1 3.1 Investment Income Costs Advisory, 171 -13% -7% Banking Q422: £2.6bn Q422: £2.0bn 0.4 ECM, 38 -5% +2% 2.6 87%1 £23m 2.4 DCM, 301 +
Slide 17: CIB income impacted by lower Global Markets income
CIB income impacted by lower Global Markets income Barclays FY 2023 Results February 2024 17 Low income in Q423 against a record Market share gains driving higher annual income Q422 FICC comparator1 Income (£bn) Markets share2,3 Record Q422 FICC Equities comparator1 reflecting (%) 7.0 6.7 6.3 6.5 in
Slide 18: Consistent capital and liquidity over time
Consistent capital and liquidity over time Barclays FY 2023 Results February 2024 18 Historical performance 13.8% 13.8% 12.0% MDA1 hurdle CET1 ratio 13-14% target 2019 2020 2021 2022 2023 82% 74% Loan: deposit ratio Prudent LDR over time 2019 2020 2021 2022 2023 161% Average Liquidity 155% Coverage
Slide 19: Strong CET1 ratio towards upper end of 13-14% target range
Strong CET1 ratio towards upper end of 13-14% target range Barclays FY 2023 Results February 2024 19 Q423 CET1 ratio movements 18bps (9bps) (23bps) (9bps) c.(30bps) 14.0% 13.8% 13.5% 1 Sep-23 Attributable Dividend RWA Other Dec-23 FY23 Dec-23 profit (excl. accrual ex. FX announced rebased SCA) buyba
Slide 20: Revised guidance on regulatory driven RWA inflation
Revised guidance on regulatory driven RWA inflation Barclays FY 2023 Results February 2024 20 Overall impact still expected at lower end of 5-10% of Group RWAs, with changed mix of drivers Basel 3.1 Lower end of 5-10% RWA inflation of Dec-23 position US Cards IRB c.£16bn H224 Q325 US Cards IRB: Expe
Slide 21: US Cards portfolio IRB migration
US Cards portfolio IRB migration Barclays FY 2023 Results February 2024 21 Aside from US Cards, no material impact in current portfolios from model migration expected Context Impact The key difference between IRB and standardised is the model now RWA impact c.£16bn in H224 captures unused credit lin
Slide 22: A strong foundation to improve financial performance going forward
A strong foundation to improve financial performance going forward Barclays FY 2023 Results February 2024 22 10.6%1 13.8% 8.0p RoTE (target: >10%) CET1 ratio FY23 dividend per share (target: 13-14%) (up 0.75p YoY) 63%1 CIR (guidance: low 60s%) 331p £1.75bn TNAV per share Share buybacks (up 36p YoY)
Slide 23: Appendix
Appendix
Slide 24: We continue to advance our ESG agenda
We continue to advance our ESG agenda Barclays FY 2023 Results February 2024 24 Barclays has been named as the Best Bank for ESG1 in the UK for 2023 Environment Social Governance • Policy: Updated Climate Change Statement in February 2024, with new financing restrictions for upstream Oil and Gas2 •
Slide 25: Long-term prudent risk positioning in our credit card portfolios
Long-term prudent risk positioning in our credit card portfolios Barclays FY 2023 Results February 2024 25 UK cards US cards • Balances c.34% lower vs. FY19 with strong and stable credit quality • Controlled portfolio growth with improved risk mix • Repayment rates remain elevated across the risk sp
Slide 26: Resilient mortgage book with customers proactively locking in rates
Resilient mortgage book with customers proactively locking in rates Barclays FY 2023 Results February 2024 26 Mortgage portfolio Maturity profile • 53.6% average balance weighted LTV of mortgage stock • 19% of total balances maturing during 20241 o 40.0% average valuation weighted LTV • Offering cus
Slide 27: Impairment: Q423 corporate loan exposure
Impairment: Q423 corporate loan exposure Barclays FY 2023 Results February 2024 27 Gross loans and advances Corporate loans by sector and debt securities (£bn) SRT protection £405bn • c.36% synthetic protection2 against c.£50bn of funded on-balance sheet exposure in the Corporate lending portfolio E
Slide 28: Commercial Real Estate exposure is modest and well managed
Commercial Real Estate exposure is modest and well managed Barclays FY 2023 Results February 2024 28 December 2023: 4.5%1 of customer loans and advances (L&A), with a weighted average LTV of 49%2 Retail Customer loans & Construction £1.0bn £348bn advances3 £2.7bn Residential Dec 2023: £4.2bn £15.8bn
Slide 29: Diverse and stable franchise deposit base
Diverse and stable franchise deposit base Barclays FY 2023 Results February 2024 29 CIB Corporates: BUK: Personal Banking £203bn3, +9% £185bn, -5% • CIB: Corporate Bank £171bn • 72% insured o >20% insured4 • >75% of relationships 5+ years o c.60% of UK relationships 5+ years o No sector concentratio
Slide 30: Prudently managed LCR supported by a highly liquid balance sheet
Prudently managed LCR supported by a highly liquid balance sheet Barclays FY 2023 Results February 2024 30 Average LCR1 78% of Liquidity Pool held in cash HTC £19bn 160% 159% 159% 161% FVOCI 6% 157% 156% 156% 157% 157% £47bn 16% Liquidity Pool Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 £298bn Mini
Slide 31: Risk weighted assets
Risk weighted assets Barclays FY 2023 Results February 2024 31 Q423 RWA movements (£bn) 4.6 (5.0) 0.2 1.1 341.9 342.7 Sep-23 Book size Methodology and policy FX¹ Other Dec-23 FY23 RWA movements (£bn) 7.9 (8.2) 0.7 5.9 342.7 336.5 Dec-22 Book size Methodology and policy FX¹ Other Dec-23 1 Foreign exc
Slide 32: CET1 ratio with significant headroom to MDA
CET1 ratio with significant headroom to MDA Barclays FY 2023 Results February 2024 32 CET1 minimum requirements at Dec-23 Leverage minimum requirements at Dec-23 MDA1 12.0% CCyB 0.9% Reg Min CCB 4.08% 2.5% CCLB 0.30% G-SII G-SII 1.5% 0.53% 13.8% Pillar 2A 2.6% 5.2% BoE 4.8% minimum leverage 3.25% re
Slide 33: Operating with a prudent buffer to each tier of capital requirements
Operating with a prudent buffer to each tier of capital requirements Barclays FY 2023 Results February 2024 33 AT1 and T2 needs managed on a total capital basis Balanced total capital structure As at Dec-23 • Operating with prudent buffers at each part of the capital stack to manage FX and RWA movem
Slide 34: TNAV per share
TNAV per share Barclays FY 2023 Results February 2024 34 QoQ TNAV movements (pence per share) 2 2 (5) (2) (2) 2 18 316 331 Sep-23 Attributable profit Cash flow hedge Share buyback FVOCI reserve Currency Pensions Own credit Dec-23 reserve translation remeasurement reserve reserve YTD TNAV movements (
Slide 35: Disclaimer
Disclaimer Barclays FY 2023 Results February 2024 35 Important Notice The terms Barclays or Group refer to Barclays PLC together with its subsidiaries. The information, statements and opinions contained in this presentation do not constitute a public offer under any applicable legislation, an offer