Slide 1: Barclays PLC 2013 Q1 Interim Management Statement
Barclays PLC 2013 Q1 Interim Management Statement 24 April 2013
Slide 2: Chris Lucas, Group Finance Director
Chris Lucas Group Finance Director
Slide 3: Adjusted financial highlights
Adjusted financial highlights 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 7,734 8,108 (5) Impairment charges (706) (784) (10) Net operating income 7,028 7,324 (4) Operating expenses excluding costs to (4,782) (4,965) (4) achieve Transform Costs to achieve Transform (514) - Adjus
Slide 4: Adjusting items to PBT
Adjusting items to PBT 2013 2012 Change Three months ended – March (£m) (£m) (%) Profit/(loss) before tax 1,5351 (525) Own credit charge 251 2,620 Provision for PPI redress - 300 Adjusted profit before tax 1,7861 2,395 (25) 1 After charging costs to achieve Transform of £514m 4 | Barclays 2013 Q1 IM
Slide 5: Adjusted performance measures
Adjusted performance measures Three months ended – March 2013 2012 Return on average shareholders’ equity 7.6% 12.4% Return on average tangible shareholders’ equity 9.0% 14.6% Return on average risk weighted assets 1.2% 1.8% Cost: income ratio1 68% 61% Basic earnings per share 8.1p 13.2p Dividend pe
Slide 6: Cost analysis
Cost analysis (£m) Non-performance costs Performance costs Costs to achieve Transform 514 5 - Head Office 5,296 4,965 (4%) 514 37 Corporate Banking 898 804 (-10%) 116 Investment Bank 4,782 4,067 3,978 (-2%) 356 Europe RBB Q1 2012 Q1 2013 Q1 2013 Costs Costs to achieve Transform 6 | Barclays 2013 Q1
Slide 7: UK Retail and Business Banking
UK Retail and Business Banking 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 1,067 1,066 - Impairment charges (89) (76) 17 Net operating income 978 990 (1) Operating expenses (excl. costs to achieve (704) (757) (7) Transform and provision for PPI redress) Costs to achieve Transfor
Slide 8: Europe Retail and Business Banking
Europe Retail and Business Banking 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 176 188 (6) Impairment charges (70) (54) 30 Net operating income 106 134 (21) Operating expenses (excl. costs to achieve (215) (209) 3 Transform) Costs to achieve Transform (356) - Loss before tax (46
Slide 9: Africa Retail and Business Banking
Africa Retail and Business Banking 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 668 764 (13) Impairment charges (114) (106) 8 Net operating income 554 658 (16) Operating expenses (excl. costs to achieve (474) (528) (10) Transform) Costs to achieve Transform - - Profit before tax
Slide 10: Barclaycard
Barclaycard 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 1,153 1,033 12 Impairment charges (303) (250) 21 Net operating income 850 783 9 Operating expenses (excl. costs to achieve (496) (445) 11 Transform) Costs to achieve Transform - - Profit before tax 363 347 5 Return on avera
Slide 11: Investment Bank
Investment Bank 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 3,463 3,436 1 Impairment charges 14 (81) Net operating income 3,477 3,355 4 Operating expenses (excl. costs to achieve (2,054) (2,195) (6) Transform) Costs to achieve Transform (116) - Profit before tax 1,315 1,182 11 R
Slide 12: Investment Bank quarterly income
Investment Bank quarterly income (£m) Total Income Total income Q1 2012 • Q1 2013 vs Q1 2012 up 1% Q2 2012 • Q1 2013 vs Q4 2012 up 34% Q3 2012 Q4 2012 Q1 2013 3,436 3,463 3,024 2,721 2,594 12 | Barclays 2013 Q1 IMS | 24 April 2013
Slide 13: Investment Bank quarterly income
Investment Bank quarterly income (£m) Q1 2012 Q2 2012 2,319 2,190 Q3 2012 Q4 2012 1,761 1,675 Q1 2013 1,494 706 591 615 620 558 523 515 509 493 454 FICC Equities and Prime Services Investment Banking Q1 13 v (6%) 19% 8% Q1 12 Q1 13 v 47% 56% (10%) Q4 12 13 | Barclays 2013 Q1 IMS | 24 April 2013
Slide 14: Corporate Banking
Corporate Banking 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 772 849 (9) Impairment charges (130) (208) (38) Net operating income 642 641 - Operating expenses (excl. costs to achieve (422) (437) (3) Transform) Costs to achieve Transform (37) - Profit before tax 183 203 (10) Adj
Slide 15: Wealth and Investment Management
Wealth and Investment Management 2013 2012 Change Three months ended – March (£m) (£m) (%) Income 469 452 4 Impairment charges (14) (7) 100 Net operating income 455 445 2 Operating expenses (excl. costs to achieve (400) (395) 1 Transform) Costs to achieve Transform - - Profit before tax 60 50 20 Ret
Slide 16: Head Office and Other Operations
Head Office and Other Operations 2013 2012 Three months ended – March (£m) (£m) Income (excl. own credit) (34) 317 Impairment charges - (2) Net operating income (34) 315 Operating expenses (excl. costs to achieve (17) 1 Transform) Costs to achieve Transform (5) - Adjusted (loss)/profit before tax (5
Slide 17: Capital, liquidity and funding
Capital, liquidity and funding As at 31 Mar 2013 31 Dec 2012 Core Tier 1 ratio 11.0% 10.8% Risk weighted assets £398bn £387bn Adjusted gross leverage 20x 19x Adjusted gross leverage excluding the 17x 16x liquidity pool Group liquidity pool £141bn £150bn 17 | Barclays 2013 Q1 IMS | 24 April 2013
Slide 18: Estimated Core Capital ratios
Estimated Core Capital ratios (%) Reported ratio Transitional CRD IV ratio Fully loaded CRD IV ratio 11.0 10.8 10.8 8.4 1 31 Dec 12 31 Mar 13 31 Mar 13 2 CT1 CT1 Estimated CET1 (Basel 2.5) (Basel 2.5) (Basel 3) 1 Includes effect of IFRS changes on 1 Jan 2013 2 For details and basis of calculation, s
Slide 19: Net Interest Margin
Net Interest Margin £m Q1 20121 Q1 20131 Customer margin Non-customer income 272 266 Non-customer margin Customer income 2,449 2,509 Average customer assets 321,832 326,340 Basis points Average customer liabilities 276,649 303,840 183 179 18 17 165 162 Q1 2012 Q1 2013 1 Numbers refer to retail busin
Slide 20: Summary
Summary Adjusted profit before tax down 25% – But up 6% excluding restructuring and non-recurring hedge gain Income down 5%, with operating expenses down 4% excluding restructuring Impairment improved 10% Capital, liquidity and funding remain strong 20 | Barclays 2013 Q1 IMS | 24 April 2013
Slide 21: Appendix
Appendix 2013 Q1 Interim Management Statement 21 | Barclays 2013 Q1 IMS | 24 April 2013
Slide 22: Adjusted return on equity (RoE)
Adjusted return on equity (RoE) (%) Q1 2012 RoE Q1 2013 RoE 1 12.4% Group 7.6% 9.6% UK RBB 11.3% (10.7%) Europe RBB (67.1%) 4.6% Africa RBB 1.6% 17.8% Barclaycard 17.9% 13.8% Investment Bank 16.3% 6.6% Corporate Banking 6.1% 7.0% Wealth and Investment Mgmt 7.9% 1 Includes effect of costs to achieve
Slide 23: Impact of costs to achieve
Impact of costs to achieve Three month ended 31.03.13 Additional adjusted performance measures Costs to Profit Return on Cost: income achieve before tax average ratio by business excluding costs to achieve Transform equity Transform (£m) (£m) (%) (%) UK RBB - 299 11.3 66 Europe RBB (356) (106) (16.0
Slide 24: Net interest income
Net interest income 2013 2012 Change Three months ended – March (£m) (£m) (%) Customer assets 1,723 1,632 6 Customer liabilities 786 817 (4) Total1 2,509 2,449 2 Product structural hedge 220 244 (10) Equity structural hedge 138 148 (7) Other (92) (120) (23) Total1 266 272 (2) Total retail businesses
Slide 25: Net interest margins and volumes
Net interest margins and volumes Total UK Europe Africa Barclay- Corporate Wealth interest As at 31 Mar 2013 Total1 RBB RBB RBB card Banking and IM income1 (£m) Net interest margin (%): 1.28 0.81 3.03 8.49 1.23 1.11 1.79 2,775 Of which customer margin (%) 1.03 0.44 2.85 8.77 1.12 0.97 1.62 2,509 Ave
Slide 26: Balance Sheet summary
Balance Sheet summary 31 Mar 13 31 Dec 12 (£bn) (£bn) Total assets 1,596 1,488 Including Derivative financial instruments 461 469 Loans and advances to customers 457 424 Total Liabilities 1,535 1,428 Including Derivative financial instruments 454 463 Customer accounts 438 385 Shareholders’ equity 61
Slide 27: Calculation of adjusted gross leverage
Calculation of adjusted gross leverage 31 Mar 13 31 Dec 12 As at (£bn) (£bn) Total assets 1,596 1,488 Counterparty netting (378) (388) Collateral on derivatives (47) (47) Net settlement balances and cash collateral (95) (72) Goodwill and intangible assets (8) (8) Customer assets held under investmen
Slide 28: RWAs by business
RWAs by business 31 Mar 13 31 Dec 12 As at (£m) (£m) UK RBB 42,613 39,088 Europe RBB 16,358 15,795 Africa RBB 24,929 24,532 Barclaycard 39,021 37,836 Investment Bank 181,922 177,884 Corporate Banking 72,731 70,858 Wealth and Investment Management 17,092 16,054 Head Office and Other Operations 3,188
Slide 29: RWA bridge
RWA bridge (£bn) 1 0.0 2.3 (0.3) 8.5 398 387 1 Jan 2013 Foreign Exchange Methodology Business activity Change in risk 31 Mar 2013 Changes parameters 1 Net effect, with some decrease in the Investment Bank offset by increases, notably in UK RBB 29 | Barclays 2013 Q1 IMS | 24 April 2013
Slide 30: Capital resources
Capital resources 31 Mar 13 31 Dec 12 As at (£m) (£m) Shareholders’ equity (excl. NCIs) 52,140 50,615 Qualifying NCIs 2,370 2,450 Regulatory adjustments and deductions: Goodwill and intangible assets (7,623) (7,622) Own credit cumulative loss/(gain) 1,034 804 Defined benefit pension adjustment1 496
Slide 31: Estimated CRD IV capital and RWAs
Estimated CRD IV capital and RWAs 31 Mar 2013 CT1 Capital (FSA 2009 definition) 43.8 RWAs (Basel 2.5) 397.9 CT1 Ratio (Basel 2.5) 11.0% CET1 Transitional CET1 Fully-loaded CRD IV impact on CT1 Capital: Adjustments not impacted by transitional provisions Conversion from securitisation deductions to R
Slide 32: Estimated CRD IV capital and RWAs – Notes
Estimated CRD IV capital and RWAs – Notes Estimated Capital Ratios are based on / subject to the following: CRD IV, models and waivers • We have estimated our CRD IV Common Equity Tier 1 (CET1) ratio, capital resources and RWAs assuming the rules were applied as at 31 March 2013 on both a transition
Slide 33: Estimated CRD IV capital and RWAs – Notes
Estimated CRD IV capital and RWAs – Notes Estimated Capital Ratios are based on / subject to the following: RWAs • EU corporates, pension funds and sovereigns are assumed to be exempt from CVA volatility charge. As at 31 March 2013, EU exemptions reduced RWAs by approximately £8bn. The final CRD IV
Slide 34: Barclays credit market exposures
Barclays credit market exposures Three months ended 31 Mar 13 Imp. FV gains/ Total gains/ 31 Mar 13 31 Dec 121 (charge) As at (losses) (losses) (£m) (£m) /release (£m) (£m) (£m) ABS CDO Super Senior 991 922 72 - 72 US sub-prime and Alt-A 661 700 43 - 43 Commercial real estate loans and properties 2,
Slide 35: Stable exposure to the Eurozone periphery
Stable exposure to the Eurozone periphery Spain Italy Portugal Ireland As at 31 Mar 2013 (£m) (£m) (£m) (£m) Sovereign 1,816 2,247 661 31 Corporate 4,033 1,660 1,587 1,208 Residential mortgages 13,587 15,847 3,591 108 Financial institutions 1,719 346 21 4,149 Other retail lending 2,592 2,123 1,776 9
Slide 36: Legal disclaimers
Legal disclaimers Important Notice The information, statements and opinions contained in this document do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation wit