Barclays Plc · LSE:BARC
Barclays — Investor Day (February 2024)
28 slides from Barclays's investor day presentation, Feb 20, 2024
Slide 1: Barclays Investment Bank Investor Update: 20th February 2024
Barclays Investment Bank Investor Update: 20th February 2024
Slide 2: Introducing Barclays Investment Bank
Introducing Barclays Investment Bank Barclays Investor Update February 2024 63 Corporate and Investment Bank £12.6bn (2023 income) Barclays Investment Bank UK Corporate Bank £11.0bn £1.6bn1 Global Markets £7.2bn Investment Banking £3.8bn UK Corporate Bank FICC £4.8bn Investment Banking Fees £2.0bn •
Slide 3: Barclays Investment Bank today
Barclays Investment Bank today Barclays Investor Update February 2024 64 Leading non-US investment bank2 At scale, focused Global Markets and Investment Banking franchises International Corporate Bank Rest of the world FICC Investment Banking Fees Income by Income by Core strengths geography1 busine
Slide 4: Strong research franchise underpins our client relationships
Strong research franchise underpins our client relationships Barclays Investor Update February 2024 65 Equity Research Credit Research Macro Research 1,700+ 900+ Integrated offering across economics, Barclays Rankings1 companies under issuers under rates, FX and EM coverage coverage #4 Global Resear
Slide 5: Financial performance 2021-23
Financial performance 2021-23 Barclays Investor Update February 2024 66 Financials 2021 2022 2023 14% RoTE 9% 7% 11.1 11.91 11.0 Income (£bn) 8.3 Cost (£bn) 6.5 7.7 Cost: income 59% 69% 70% 5.0 PBT (£bn) 3.5 3.2 196 197 RWA (£bn) 182 Income/ Average RWA (%) 6.4% 5.8% 5.5% 1 Excluding Over-issuance o
Slide 6: Stable income in different macro-economic and market environments
Stable income in different macro-economic and market environments Barclays Investor Update February 2024 67 11.3 11.61 11.1 11.0 2.2 Total (£bn) 8.9 2.7 2.0 3.7 Investment Banking fees 2.5 5.71 4.3 5.8 4.3 Intermediation2 3.4 2.9 Financing2 1.8 1.8 2.2 2.9 International 1.8 Corporate Bank3 1.1 1.0 1
Slide 7: Scale businesses at different stages of progress
Scale businesses at different stages of progress Barclays Investor Update February 2024 68 Business today Business tomorrow Global Markets • Monetise technology and capital investments Significant technology and capital investments already made made since 2019 • Consolidate gains in Financing • Deep
Slide 8: Over half of income growth driven by executing management actions
Over half of income growth driven by executing management actions Barclays Investor Update February 2024 69 Investment Banking Global Markets c.£1.1bn c.£0.7bn • Markets broadly flat • Banking reverting to 10-year mean High single digit CAGR £11bn Initiatives driven by executing management actions 2
Slide 9: Plan to increase RWA productivity in Investment Banking
Plan to increase RWA productivity in Investment Banking Barclays Investor Update February 2024 70 Global Markets 7.2 Investment Banking Income 5.3 Income 3.6 3.8 (£bn) 116 (£bn) 84 Average RWA 86 Average RWA 68 (£bn) (£bn) Income/ 6.1% 6.2% Income/ Average RWA 5.4% 4.6% Average RWA 2019 2020 2021 20
Slide 10: Modest cost growth due to prior investments in technology and people
Modest cost growth due to prior investments in technology and people Barclays Investor Update February 2024 71 High single Income (£bn) 8.9 11.1 11.0 digit CAGR Cost: income ratio 73% 59% 70% High 50s % ~ stable RetailEfficiencies & self-funding focused Corporateinvestments and offsetting inflation
Slide 11: Investment Banking
Investment Banking
Slide 12: Investment Banking today
Investment Banking today Barclays Investor Update February 2024 73 #6 #1 Global IB Fees1 UK IB Fees1 Leading franchises with further potential Top 5 Top 5 Global Sponsors franchise1 Global DCM franchise1 Sponsors International Advisory Focus on attractive US and UK markets2 Corporate Bank APAC 7% 10
Slide 13: Leverage DCM strengths to enhance returns
Leverage DCM strengths to enhance returns Barclays Investor Update February 2024 74 Strong corporate client relationships Driving greater number of non-lending products and capabilities with existing clients Proportion of clients we lend to2 #5 Access to global in DCM globally1 capital markets More
Slide 14: Integrated International Corporate Bank platform
Integrated International Corporate Bank platform Barclays Investor Update February 2024 75 Leverage ICB opportunity with multinational clients outside the UK Proportion of clients1 8% • Strong cross-border client proposition 48% 70% 65% • Capital efficient growth 92% • High quality income 52% 35% c.
Slide 15: Rebalance footprint towards ECM and Advisory
Rebalance footprint towards ECM and Advisory Barclays Investor Update February 2024 76 Currently underweight ECM and Advisory1 Invested in talent in high growth sectors 43% 35% Tech, Energy, >60% senior hiring in Tech, Healthcare Healthcare, Energy Transition, 35% share of Sponsors, ECM and M&A in 2
Slide 16: Investment Banking 2026: Simpler, Better and More balanced
Investment Banking 2026: Simpler, Better and More balanced Barclays Investor Update February 2024 77 Simpler • Integrated International Corporate Bank platform >£0.7bn income growth • Leverage DCM strengths from management actions Better to enhance returns • Deepen client relationships Improve Incom
Slide 17: Global Markets
Global Markets
Slide 18: Global Markets today
Global Markets today Barclays Investor Update February 2024 79 Executed Markets Strategy to reset baseline income average Only non-US bank Diversified across Leading financing +£2.2bn with scale access to businesses franchise: more US client base stable income £7.5bn £5.3bn Rest of the Equities Spre
Slide 19: Simpler: monetise our deep client relationships
Simpler: monetise our deep client relationships Barclays Investor Update February 2024 80 #5 Global Markets franchise by client share1 Ranked Top 5 counterpart by half of our Top 100 clients1 Markets FICC Equities • =#5 Global G10 Rates Target • =#2 Global G10 Credit 70 2023 #5 #4 #5 • #4 Americas F
Slide 20: Simpler: maintain our prudent risk management
Simpler: maintain our prudent risk management Barclays Investor Update February 2024 81 Growth in client volumes underpinned by disciplined Increased floor on income since 2019 approach to risk Daily trading income distribution3 £100m Russia/ 1.0bn Average +£11m Pandemic Ukraine per day 0.9bn Increa
Slide 21: Better: sustain momentum in our businesses with Top market share
Better: sustain momentum in our businesses with Top 5 market share Barclays Investor Update February 2024 82 Barclays businesses with Top 5 market share Including: Prime | Fixed Income Financing | Credit | Corporate Equity Derivatives Businesses with Top 5 Market share2 Share of Barclays Income & RW
Slide 22: Better: grow our next focus businesses
Better: grow our next focus businesses Barclays Investor Update February 2024 83 Our next focus businesses Market share2 1. European No presence 6%2 c.5% ~7.5% Rates Businesses without Top 5 Industry market 2. Derivatives Equity ~4.5% Wallet c.£0.5bn share 41%2 c.£100bn1 income by 2026 Securitised M
Slide 23: Better: improve our electronic offering
Better: improve our electronic offering Barclays Investor Update February 2024 84 Since 20211 Stronger platforms Simplify Stable #1 London Stock Exchange for three 35% 78% years running2 reduction in legacy feeds reduction in technology outages Top 3 average EMEA Rates Cash across major platforms3 8
Slide 24: More balanced: continue scaling more stable financing income
More balanced: continue scaling more stable financing income Barclays Investor Update February 2024 85 Joint #1 Fixed Income Financing1 Joint #5 Prime Services1 (Joint #3 in 2019) (#7 in 2019) Financing Target • Represents 36% of Global c.5% Markets income 2021-2023 CAGR • High returning, RWA-effici
Slide 25: Global Markets 2026: Journey to Simpler, Better and More balanced
Global Markets 2026: Journey to Simpler, Better and More balanced Barclays Investor Update February 2024 86 Simpler • Monetise our deep client relationships 70 • Maintain our prudent risk Top 5 rank with the Top 100 clients management Better • Sustain momentum in our businesses with Top 5 market sha
Slide 26: Barclays Investment Bank
Barclays Investment Bank
Slide 27: Today's financials and 2026 targets
Today’s financials and 2026 targets Barclays Investor Update February 2024 88 Financials 2021 2022 2023 2026 Targets 14% RoTE 9% 7% In line with Group 11.91 Income (£bn) 11.1 11.0 High single digit CAGR 69% 70% Cost: income 59% High 50s % Broadly stable RWA (£bn) 182 196 197 c.50% of Group RWA Incom
Slide 28: Disclaimer
Disclaimer 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 to sell or solicitation of any offer to bu