Barclays Plc · LSE:BARC
Barclays — J.P. Morgan Investor Conference 2014
13 slides from Barclays's conference presentation, November 2014
Slide 1: Barclaycard presentation
Barclaycard presentation Valerie Soranno Keating, CEO Barclaycard November 2014
Slide 2: Barclaycard makes a material contribution to Barclays Group profits
Barclaycard makes a material contribution to Barclays Group profits Barclays Adjusted PBT (Inc. CTA) – 9 months to Q3, total £4,939m Share of PBT 2,852 Personal & 2,257 46% Corporate Banking Investment Bank 1,342 27% Barclaycard 1,126 23% Africa Banking 756 15% Head Office 106 2% Barclays -648 -13%
Slide 3: Barclaycard provides solutions for consumers and businesses
Barclaycard provides solutions which enable consumers to buy in the way they want, merchants to sell in the way they want, and connect the two in a way which adds value to both Consumers Paying Businesses Consumers Businesses Businesses Businesses Paying Consumers Consumers Paying Businesses Paying
Slide 4: Only UK bank operating across the entire payment flow
Barclaycard is the only bank in the UK that operates across the entire payment flow – on both the buyer and seller sides of the payment Consumers Paying Businesses Consumers Businesses c.£250bn >40% global payment of all UK debit volume & credit card purchases Page 3 | Barclaycard | November 2014 |
Slide 5: Leverages multiple channels to acquire customers and achieve scale
Barclaycard leverages multiple channels to acquire customers and achieve scale Consumers Paying Businesses Consumers Businesses +9m new customers over the past 3 years Cross Sell Strongest + Online & Direct + Partnerships Business + Acquisitions Portfolio penetration of Marketing Co-brand and retail
Slide 6: Barclaycard is as big internationally as in the UK
Barclaycard is as big internationally as in the UK Consumers Paying Businesses Consumers Businesses Q3 2014 Customers 50% 50% Page 5 | Barclaycard | November 2014 |
Slide 7: Barclaycard is a top 10 consumer payments provider globally
Barclaycard is a top 10 consumer payments provider globally Ranked by Value of Consumer Payments Processed in 2013 1 China UnionPay 2 First Data 3 JPM Chase 4 Amex Credit card 5 6 Vantiv (First Data) Bank of America (MBNA) #1 issuer in Europe 7 Alipay China Merchant 8 9 US Bancorp (Elavon) Worldpay
Slide 8: Continued growth at consistently high returns
Barclaycard has delivered continued growth at consistently high returns 2009(1) 2013(2) Income Strongest growth and lowest CIR of Impairment any major US or UK competitor (4) Costs x2 PBT(3) 1.2 2 Customers 17.7m 49% 26.4m Income per customer £194 20% £155 Cost per customer £76 7% £70 Net Loans & Ad
Slide 9: Going forward, we will build on our existing strong core and trajectory
Going forward, we will build on our existing strong core and trajectory by: Continuing to - And looking to further accelerate growth by - Add over 1m new incremental Expanding consumer 1 1 customers per year lending in the US & Europe Outpace growth in all of our Expanding merchant 2 2 markets – inc
Slide 10: We will focus more on our higher growth businesses
“We will focus more on our higher growth businesses …particularly Barclaycard and Africa” - Barclays 8th May Strategy Announcement
Slide 11: Appendix: Barclaycard risk appetite and approach to risk management
Appendix: Barclaycard risk appetite and approach to risk management UK Credit Cards: Ave. Net Receivables by risk band Barclaycard Risk Performance UK 30-day n/a 4.0% 2.4% delinquency 8% Super-Prime 7% Prime 6% Near Prime 5% 2008 2010 2013 4% Barclaycard US Credit Cards: Ave. Net Receivables by risk
Slide 12: Appendix: Business growth with modest margin reduction
Appendix: Business growth with modest margin reduction due to promotional offers and change in product mix Income Net Interest Margin 8% 20bps FY: £4,103m FY: £3,816m FY: 9.2% FY: 9.0% 2012 2013 2012 2013 Loans & Advances Payments Processed 9% 9% FY: £236bn FY: £31.5bn FY: £217bn FY: £28.8bn 2012 20
Slide 13: Legal Disclaimer
Legal Disclaimer 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 with