Slide 1: Barclays PLC FY 2022 Results
Barclays PLC FY 2022 Results 15 February 2023
Slide 2: Strategic Update, Financial Results, Appendix
i ii iii Strategic Update Financial Results Appendix: Financials C.S. Venkatakrishnan Anna Cross Group CEO Group Finance Director
Slide 3: FY22: Delivered against our target of >10% RoTE
FY22: Delivered against our target of >10% RoTE Income Statement Capital & Distributions £25.0bn c.13.4p1 Income per share £7.0bn c.7.2%2 PBT yield 10.4% 13.9% RoTE CET1 Ratio 30.8p 295p EPS TNAV per share 1 Includes total dividend for 2022 of 7.25p per share and total share buybacks announced in re
Slide 4: Demonstrating execution against our three strategic priorities
Demonstrating execution against our three strategic priorities Deliver next-generation, digitised Deliver sustainable growth in Capture opportunities as we consumer financial services the CIB transition to a low carbon economy 10.5m Invested consistently in technology and $1tn Barclays UK mobile act
Slide 5: Strategic Update, Financial Results, Appendix
i ii iii Strategic Update Financial Results Appendix: Financials C.S. Venkatakrishnan Anna Cross Group CEO Group Finance Director
Slide 6: FY22: Group RoTE of 10.4% with profit before impairment up 9%
FY22: Group RoTE of 10.4% with profit before impairment up 9% Performance Reported profit before tax (£bn) £25.0bn £16.7bn (0.9) Income Costs FY21: £21.9bn FY21: £14.7bn 3.0 (1.2) (0.3) 67% £8.2bn Cost: Income Profit before (1.9) ratio impairment FY21: 67% FY21: £7.5bn £1.2bn 30bps Impairment Loan l
Slide 7: FY22: Double digit RoTE across all three operating businesses
FY22: Double digit RoTE across all three operating businesses FY22 RoTE UK Retail Banking 18.7% • Barclays UK • UK Business Banking • International Cards and Consumer Consumer Cards & Banking Payments • Private Banking 10.0% • Payments Global Markets Corporate & Investment • • Investment Banking 10.
Slide 8: FY22 Income: Growth across all three operating businesses
FY22 Income: Growth across all three operating businesses Group income (£bn) +14% 25.0 BUK Net Interest Margin (NIM) +34bps YoY to 2.86% 21.9 +11% 7.3 6.5 US cards balances +31% YoY (in USD) 4.5 CC&P Value of payments processed +11% YoY 3.3 +35% Private Banking Client Assets and Liabilities1
Slide 9: FY22 Income: Financing provides more stability to Global Markets income
FY22 Income: Financing provides more stability to Global Markets income Global Markets income (£bn) 5.3 7.6 6.4 8.8 Our financing businesses: Provide a more stable, core income stream Generate attractive returns Complement intermediation activity 5.8 6.0 Are integrated across FICC and Equiti
Slide 10: FY22 Income: Investment delivering market share gains
FY22 Income: Investment delivering market share gains Top 10 Peer Global Markets revenue share change 2022 vs. 2019 (bps)1 Client rankings #1 GS 356 Number of Barclays Top 100 clients #2 BARC 114 where Global Markets has top 5 wallet share2 #3 DB 56 +114bps #4 BNP 33 Three-year revenue share +37% #5
Slide 11: FY22 Income: Interest rates tailwind likely to continue into FY23
FY22 Income: Interest rates tailwind likely to continue into FY23 Interest rate sensitivity Structural hedge Illustrative Group income impact from a 25bps upward Q422 gross hedge income up 91% YoY parallel shift in interest rate curves (£m)1 4.18% Structural hedge 3.05% c.500 3.69% Other 2.26% Spot3
Slide 12: FY22 Costs: Investing for growth; targeting improved CIR
FY22 Costs: Investing for growth; targeting improved CIR FY22 Group costs (£bn) FY23 CIR CIR Targeting a Group 67%1 67%1 CIR percentage in the low 60s 16.7 Cost 0.5 14.7 0.4 1.6 considerations 1.2 0.4 4.3 Group 4.4 L&C 2.7 2.3 BUK 6.9 7.8 CC&P 0.7 0.4 CIB FY21 L&C FX Other FY22 restated BUK CC&P CIB
Slide 13: FY22 Impairment: Expect to normalise towards historical LLRs
FY22 Impairment: Expect to normalise towards historical LLRs Balance sheet provisions for ECL1 (£bn) LLR2 (bps) 6.4 6.2 0.3 (0.4) 138 (0.1) Other ECL 1.2 1.1 Economic 0.3 0.7 uncertainty adjustments 53 57 55 Model ECL 4.5 4.8 44 30 Q322 Model ECL Economic Other ECL Q422 uncertainty adjustments (18)
Slide 14: FY22: Consumer loan book resilient for economic uncertainty
FY22: Consumer loan book resilient for economic uncertainty UK Mortgages (£bn) UK Cards (£bn) 90 day arrears rate Net loans and advances at amortised cost (L&A) 30 day arrears rate Net L&A 162.2 143.2 14.7 LTV >85% 9.2 2.3% of total balances Balance paydown at high levels 0.2% 1.7% 0.1% (FY19: 4.1%)
Slide 15: FY22: Disciplined approach to risk in the CIB
FY22: Disciplined approach to risk in the CIB CIB RWAs up £15bn driven by FX and regulation CIB loans & advances • Loans and advances to customers and banks: £99bn − £54bn corporate lending exposures; first loss protection Revenue growth whilst managing RWA footprint on 32% of these loans2,3 12 (1)
Slide 16: Q422: Group profit before impairment increased 29%
Q422: Group profit before impairment increased 29% Q422 Performance Reported profit before tax (£bn) £5.8bn £4.0bn Income Costs Q421: £5.2bn Q421: £3.8bn (0.2) 69% £1.8bn 0.6 Cost: Income Profit before ratio impairment (0.5) Q421: 73% Q421: £1.4bn £0.5bn 49bps Impairment Loan loss rate Q421: £(31)m
Slide 17: Q422: Barclays UK higher income supported by rising rates
Q422: Barclays UK higher income supported by rising rates Q422 Performance Income (£bn) Net interest margin £2.0bn £1.1bn +16% Income Costs FY23 NIM expected to be greater than 3.20%2 Q421: £1.7bn Q421: £1.2bn 2.0 58% £0.2bn 1.7 Cost: Income Impairment 0.5 +30% 0.29% (0.33%) ratio Q421: £(0.1)bn Q42
Slide 18: Q422: CC&P strong income growth of 46% YoY
Q422: CC&P strong income growth of 46% YoY Q422 Performance Income (£bn) £1.3bn £0.8bn +46% $29.2bn Income Q421: £0.9bn Costs Q421: £0.6bn US Cards End 1.3 Net Receivables +31% vs Q421 60% £0.3bn Cost: Income Impairment ratio Q421: £0.1bn Q421: 72% 0.9 +56% £139.4bn 0.9 Private Bank of which £62.4bn
Slide 19: Q422: CIB performance demonstrates diversification benefits
Q422: CIB performance demonstrates diversification benefits Q422 Performance Income (£bn) Income by business (£m) YoY % USD YoY %: £2.6bn £2.0bn Income Costs Q421: £2.6bn Q421: £1.7bn +79% +56% Markets FICC, 976 Global -2% Equities, 440 -12% -23% 77% £41m 2.6 Cost: Income 2.6 Impairment Total +35% +
Slide 20: Q422: Disciplined capital management
Q422: Disciplined capital management Q422 CET1 ratio movements Future considerations Q123 Target (9bps) • Share buyback £0.5bn: c.(15)bps 13-14% 31bps (9bps) • IFRS 9: c.(13)bps reduction in transitional (28bps) 24bps MDA relief on 1-Jan-23 hurdle 11.3% • Kensington3 : c.(12)bps on completion in Q12
Slide 21: Outlook
Outlook Returns Targeting RoTE of greater than 10% in 2023 Diversified income streams continue to position the Group well for the current Income economic and market environment including higher interest rates. In 2023, Barclays UK NIM is expected to be greater than 3.20%1 Targeting a cost: income ra
Slide 22: Strategic Update, Financial Results, Appendix
i ii iii Strategic Update Financial Results Appendix: Financials C.S. Venkatakrishnan Anna Cross Group CEO Group Finance Director
Slide 23: Targets and performance
Targets and performance Medium-term targets FY22 RoTE >10% 10.4% Cost: income ratio <60% 67% CET1 ratio 13-14% 13.9% Capital returns Announced 2022 total capital return Progressive ordinary dividend, supplemented equivalent to c.13.4p per share with buybacks as appropriate Total dividend of 7.25p pe
Slide 24: We continued to advance our ESG agenda in 2022
We continued to advance our ESG agenda in 2022 Environmental Social Governance Brought forward part of the 2023 pay Created a pathway to address our increase, awarding 35,000 UK-based junior supply chain emissions colleagues a £1,200 salary increase effective Fully integrated our TCFD1 report into f
Slide 25: Over-issuance of Securities
Over-issuance of Securities1 Context Financial impact (£m) • In March 2022, the Group became aware that BBPLC2 had issued securities Total materially in excess of the amount registered under its shelf registration FY21 FY22 Impact statement filed with the US Securities and Exchange Commission (SEC)
Slide 26: Quarterly income and costs
Quarterly income and costs Income1 Operating costs2 3,939 6,708 3,682 3,748 6,496 3,588 3,514 5,951 5,801 5,160 2,043 1,796 4,033 1,562 1,921 1,870 3,938 2,821 2,576 2,632 598 747 1,286 667 733 1,244 584 878 886 1,083 1,202 1,108 1,970 998 1,085 1,069 1,699 1,649 1,724 1,916 Q421 Q122 Q222 Q322 Q422
Slide 27: Macroeconomic variables
Macroeconomic variables Q422 Q422 Upside 2 Q422 Upside 1 Q422 Baseline Q422 Downside 1 Q422 Downside 2 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 UK GDP1 2.8% 3.7% 2.9% 1.0% 2.3% 2.4% (0.8)% 0.9% 1.8% (2.1)% (1.5)% 1.9% (3.4)% (3.8)% 2.0% UK unemployment2 3.5% 3.4% 3.
Slide 28: Macroeconomic variables
Macroeconomic variables Q322 Q322 Upside 2 Q322 Upside 1 Q322 Baseline Q322 Downside 1 Q322 Downside 2 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 UK GDP1 4.0% 3.3% 2.8% 2.1% 2.5% 2.3% 0.3% 1.6% 1.8% (2.3)% (0.4)% 2.9% (5.0)% (2.5)% 4.0% UK unemployment2 3.5% 3.4% 3.4%
Slide 29: Impairment: December 2022 coverage ratios
Impairment: December 2022 coverage ratios Credit cards, unsecured loans and other retail lending Wholesale loans Impairment allowance Impairment allowance Gross loans (£bn) Coverage ratio Gross loans (£bn) Coverage ratio (£bn) (£bn) Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 Dec-22 Dec-
Slide 30: Impairment: December 2022 coverage ratios
Impairment: December 2022 coverage ratios UK cards US cards Impairment allowance Impairment allowance Gross loans (£bn) Coverage ratio Gross loans (£bn) Coverage ratio (£bn) (£bn) Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 Dec-22 Dec-19 Sep-22 D
Slide 31: Impairment: Wholesale exposures and UK/US cards arrears rates
Impairment: Wholesale exposures and UK/US cards arrears rates Wholesale and selected sector exposure Wholesale lending excl. Selected sectors (£bn/coverage ratio %) Gross loans Debt Securities (£bn) Exposure Coverage • c.30% of the Wholesale book is secured, increasing to >60% Wholesale excl. Debt S
Slide 32: Strong liquidity position and deposit base
Strong liquidity position and deposit base Liquidity comfortably exceeding minimum requirements Deposits evolution (£bn)1 168% 165% 528 156% 151% 519 512 493 Minimum 78 84 82 requirement: 69 100% 179 183 163 172 Dec-21 Jun-22 Sep-22 Dec-22 261 262 261 258 Liquidity pool 291 343 326 318 (£bn) Dec-21
Slide 33: FY22 Capital
FY22 Capital CET1 ratio movements (c.80bps) 149bps (79bps) (39bps) (38bps) (6bps) (22bps) 15.77% 15.1% 15.07% 14.98% 14.59% 14.21% 14.15% 13.93% 13.9% 1 Dec-21 Attributable Regulatory Distributions Pensions Fair Value RWA Other 2 Dec-22 profit changes from through growth (including FX) 1 Jan 2022 Ot
Slide 34: RWA
RWA Q422 RWA movements (£bn) (4.2) (8.9) (1.2) 350.8 336.5 1 Sep-22 Book size FX Other Dec-22 FY22 RWA movements (£bn) (1.6) 14.1 (1.2) 4.5 6.6 336.5 314.1 1 Dec-21 Regulatory changes Book size Acquisitions and disposals FX Other Dec-22 from 1 Jan 2022 1 FX on credit risk, counterparty credit risk a
Slide 35: Basel 3.1 day one impact expected to be at lower end of prior 5-10%
Basel 3.1 day one impact expected to be at lower end of prior 5-10% RWA guidance Timeline Current view of impacts from Basel 3.1 implementation Nov-22 PRA released Consultation Paper 16/22 Day one Pillar 1 inflation Potential offsets on Basel 3.1 standards From the finalisation of the Basel • Expect
Slide 36: CET1 ratio within 13-14% target range and above requirements
CET1 ratio within 13-14% target range and above requirements CET1 minimum requirements UK leverage minimum requirements MDA1 11.3% CCyB 0.4% CCB 2.5% Reg Min 3.975% G-SII 1.5% CCLB 0.2% 13.9% G-SII 0.525% Pillar 2A 2.4% 5.3% 4.8% BoE minimum leverage 3.25% Pillar 1 4.5% requirement 2 2 2 CET1 requir
Slide 37: Prior capital drag from pensions eliminated
Prior capital drag from pensions eliminated Triennial actuarial valuation Pension transaction unwind Pension portfolio position Completed UKRF well positioned with a UKRF triennial actuarial valuation1 Completed balanced portfolio £2bn funding surplus (vs. £2.3bn Pension transaction unwind2 Ro
Slide 38: IFRS 9 transitional relief of c.20bps as at Dec-22
IFRS 9 transitional relief of c.20bps as at Dec-22 2020 regulatory action gave further relief for impairments IFRS 9 transitional relief CET1 add-back (£bn) • 75% transitional relief for modified impairment post Dec-19 applied in 2022 2.6 • Transitional relief schedule for static component per origi
Slide 39: Capital structure well managed
Capital structure well managed Capital structure and requirements Balanced total capital structure ≥16.7% total 20.8% total • Continue to run a robust level of AT1 capital and maintain conservative capital capital ratio headroom requirement1 • AT1 as a proportion of RWAs may vary due to seasonal and
Slide 40: TNAV per share
TNAV per share QoQ TNAV movements (pence per share) 7 1 (9) 14 (4) 286 295 Sep-22 Cash flow hedge reserve Attributable profit Other Currency translation Pension remeasurement Dec-22 reserve YoY TNAV movements (pence per share) 7 9 13 (40) 32 (8) (6) (2) (1) 291 295 Dec-21 Attributable Currency Own c
Slide 41: Q422 Group Financial Highlights
Q422 Group Financial Highlights Three months ended (£m) Dec-22 Dec-21 % change Income up 12% YoY including the benefit from FX, with strong performances in Barclays UK Income 5,801 5,160 +12% – Operating costs (3,748) (3,514) -7% and CC&P. Within CIB, strong performances in Global Markets and Transa
Slide 42: Q422 Barclays UK Financial Highlights
Q422 Barclays UK Financial Highlights Three months ended (£m) Dec-22 Dec-21 % change Income up 16% YoY capturing the benefit from rising interest rates – Personal Banking 1,229 983 +25% – Barclaycard Consumer UK 269 352 -24% − NIM increased 9bps QoQ to 3.10% – Business Banking 472 364 +30% Income 1,
Slide 43: Q422 Barclays International Financial Highlights
Q422 Barclays International Financial Highlights Three months ended (£m) Dec-22 Dec-21 % change Income up 10% Income 3,862 3,510 +10% – Operating costs (2,543) (2,160) -18% − Diversified income profile across businesses and geographies – Bank levy (133) (134) +1% – Litigation and conduct (67) (84) +
Slide 44: Q422 Corporate & Investment Bank Financial Highlights
Q422 Corporate & Investment Bank Financial Highlights Three months ended (£m) Dec-22 Dec-21 % change Income down 2% – FICC 976 546 +79% – Equities 440 501 -12% 13% appreciation of average USD against GBP was a tailwind to income and profits, and a Global Markets 1,416 1,047 +35% headwind to impairme
Slide 45: Q422 Consumer Cards & Payments Financial Highlights
Q422 Consumer Cards & Payments Financial Highlights Three months ended (£m) Dec-22 Dec-21 % change Income up 46% with growth across all businesses – International Cards & Consumer Bank 860 552 +56% – Private Bank 285 200 +43% − International Cards and Consumer Bank income up 56% driven by higher int
Slide 46: Q422 Head Office Financial Highlights
Q422 Head Office Financial Highlights Three months ended (£m) Dec-22 Dec-21 % change Income of £(31)m driven by Income (31) (49) +37% – Operating costs (97) (152) +36% − Treasury items, funding costs on legacy capital instruments and mark-to-market – Bank levy (17) — losses on legacy investments, mo
Slide 47: FY22 Group Financial Highlights
FY22 Group Financial Highlights Year ended (£m) Dec-22 Dec-21 % change Income up 14% YoY with broad-based momentum across our operating divisions and the Income 24,956 21,940 +14% – Operating costs (14,957) (14,092) -6% benefit from FX – Bank levy (176) (170) -4% Costs of £16.7bn (2021: £14.7bn) ref
Slide 48: FY22 BUK FY22 BI
FY22 BUK FY22 BI Year ended (£m) Dec-22 Dec-21 % change Year ended (£m) Dec-22 Dec-21 % change – Personal Banking 4,540 3,883 +17% Income 17,867 15,665 +14% – Barclaycard Consumer UK 1,093 1,250 -13% – Operating costs (10,361) (9,076) -14% – Business Banking 1,626 1,403 +16% – Bank levy (133) (134)
Slide 49: FY22 CIB FY22 CC&P
FY22 CIB FY22 CC&P Year ended (£m) Dec-22 Dec-21 % change Year ended (£m) Dec-22 Dec-21 % change – FICC 5,695 3,448 +65% – International Cards & Consumer Bank 2,913 2,092 +39% – Equities 3,149 2,967 +6% – Private Bank 1,014 781 +30% Global Markets 8,844 6,415 +38% – Payments 572 458 +25% – Advisory
Slide 50: FY22 Head Office, Exchange rates and share count information
Exchange rates and share count FY22 Head Office information Year ended (£m) Dec-22 Dec-21 % change YoY % Exchange rates Dec-22 Sep-22 Dec-21 Income (170) (261) +35% change – Operating costs (336) (659) +49% Period end – USD/GBP 1.21 1.12 1.35 (10)% – Bank levy (17) - YTD average – USD/GBP 1.24 1.26
Slide 51: 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