Slide 1: Q3 2024 Results Presentation
Q3 2024 Results Presentation 24th October 2024
Slide 2: C.S. Venkatakrishnan, Group CEO
C.S. Venkatakrishnan Group CEO
Slide 3: We set out financial targets and are on the path to delivery
We set out financial targets and are on the path to delivery Barclays Q3 2024 Results October 2024 3 Targets Q324 Q324 YTD 2024 2026 Statutory RoTE 12.3% 11.5% >10% >12% 12.1% excl. inorganic activity1 c.10.5% excl. inorganic activity1 Broadly in line with At least £10bn2 Total payout £1.2bn 2023 20
Slide 4: Q324 performance summary
Q324 performance summary Barclays Q3 2024 Results October 2024 4 Q324 Statutory RoTE Barclays UK 23.4% FY26 target: high teens% UK Corporate Bank 18.8% Execution progress FY26 target: high teens% Tesco Bank acquisition to complete 1 st November 2024 Private Bank & Wealth 29.0% Management FY26 target
Slide 5: Anna Cross, Group Finance Director
Anna Cross Group Finance Director
Slide 6: Barclays Group Q324
Barclays Group Q324 Barclays Q3 2024 Results October 2024 6 Q324 Q324 YTD 12.3% £2.2bn 11.5% £6.4bn Statutory RoTE Profit before tax Statutory RoTE Profit before tax Q323: 11.0% Q323: £1.9bn Q323 YTD: 12.5% Q323 YTD: £6.4bn £6.5bn £0.4bn £19.8bn £1.3bn Income Impairment Income Impairment Q323: £6.3b
Slide 7: Group delivered Q324 RoTE of 12.3%; FY24 RoTE target >10%
Group delivered Q324 RoTE of 12.3%; FY24 RoTE target >10% Barclays Q3 2024 Results October 2024 7 Group RoTE (%) (0.1) 0.4 (0.9) 1.9 Includes c.110bps from less negative cash flow hedge reserve 12.3 11.0 Q323 RoTE Income Costs Impairment Book value growth & Other Q324 RoTE
Slide 8: Income up 5% YoY; more stable income streams 74% of Group income
Income up 5% YoY; more stable income streams 74% of Group income Barclays Q3 2024 Results October 2024 8 Group income (£bn) +5% YoY More stable income streams 6.3 6.3 6.5 74% >70% 6.0 0.6 of Group income in Q324 of Group income by 2026 Banking fees & 0.4 0.7 underwriting 0.5 1.1 1.1 1.1 1.53 Interme
Slide 9: Group NII of £2.8bn; FY24 Group NII guidance revised to >£11.0bn
Group NII of £2.8bn1; FY24 Group NII guidance revised to >£11.0bn1,2 Barclays Q3 2024 Results October 2024 9 Net interest income (£bn) +2% YoY +3% QoQ 2.8 2.8 2.7 2.7 2024 Group NII (excl. IB and HO) guidance: >£11.0bn2 Previously: c.£11.0bn2 UK Corporate Bank, Private Bank & Wealth 1.2 1.1 1.1 • £8
Slide 10: £1.2bn structural hedge income in Q324
£1.2bn structural hedge income in Q324 Barclays Q3 2024 Results October 2024 10 Gross hedge income expected to continue to grow 10.0 09.0 Gross contribution Q324: 3.6% 3.4% resilient to marginal 08.0 4.1% changes in rates 07.0 Q324: 2.1% and hedge notional GBP 5yr swap rate1 06.0 1.0% 0.9% Average 0
Slide 11: Total and operating costs stable YoY; FY24 CIR target of c.63%
Total and operating costs stable YoY; FY24 CIR target of c.63% Barclays Q3 2024 Results October 2024 11 Group total costs (£bn) Group c.63% CIR 2024 target Group CIR 61% Q324 YTD Efficiency savings more than offsetting inflation and reg & control spend, enabling investments Cost: income ratio Q322 Q
Slide 12: LLR of 37bps; maintaining through the cycle guidance of 50-60bps
LLR of 37bps; maintaining through the cycle guidance of 50-60bps Barclays Q3 2024 Results October 2024 12 800 190 Loan loss rate (bps) LLR guidance over 636 610 FY24-FY26 period 582 600 515 US Consumer Bank 438 Trend towards 140 411 411 long term average 337 400 of c.400bps Q324 impairment charge: 2
Slide 13: Broadly stable delinquency trends in US cards
Broadly stable delinquency trends in US cards Barclays Q3 2024 Results October 2024 13 Write offs increasing as expected with reserve build slowing 30 day US cards delinquencies 2.7% 2.9% 3.1% 2.9% 3.0% 2.2% 2.3% 2.4% 2.0% 90 day US cards delinquencies 1.5% 1.7% 1.6% 1.6% 1.2% 1.2% 1.2% 1.3% 0.8% LL
Slide 14: Leading indicators of UK lending growth strategy
Leading indicators of UK lending growth strategy Barclays Q3 2024 Results October 2024 14 Mortgages (£bn) • Increase in gross mortgage lending Gross lending 7.9 8.3 • Positive net lending as new business 7.0 7.1 6.9 5.6 5.7 5.0 6.6 4.4 4.2 exceeds redemptions Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423
Slide 15: Barclays UK Q324
Barclays UK Q324 Barclays Q3 2024 Results October 2024 15 Targets 2026 23.4% £0.9bn RoTE High teens % RoTE Profit before tax Q323: 21.0% Q323: £0.8bn Mid-single digits NII £1.9bn £1.7bn Income CAGR Income Net Interest Income Q323: £1.9bn Q323: £1.6bn 2024 NII c.£6.5bn1 52% £16m Cost: income ratio c.
Slide 16: Barclays UK delivered Q324 RoTE of 23.4%
Barclays UK delivered Q324 RoTE of 23.4% Barclays Q3 2024 Results October 2024 16 RoTE (%) Income by product (£m) YoY Costs (£m) 1,916 1,873 1,887 1,946 +4% Business 421 470 485 513 +9% Banking 283 238 228 249 YoY Barclaycard +5% Consumer UK 1,072 1,049 1,045 1,006 -4% Personal 1,212 1,165 1,174 1,1
Slide 17: Stabilising deposit and net lending trends
Stabilising deposit and net lending trends Barclays Q3 2024 Results October 2024 17 Barclays UK deposit balances and mix (£bn) Barclays UK loans and advances1 (£bn) -£2.1bn -£3.9bn -£0.5bn -£0.5bn 205 203 201 199 243 241 237 237 199 236 Business Business Banking 23 23 22 21 21 Banking 57 Barclaycard
Slide 18: Acquisition of Tesco Bank to complete on 1st November 2024
Acquisition of Tesco Bank to complete on 1st November 2024 Barclays Q3 2024 Results October 2024 18 Tesco Bank Loans and deposits as at H124 (£bn) Estimated day 1 financial impacts Financials to be confirmed following completion2 8.4 c.£0.5bn gain Income Book being bought at a discount c.£0.2bn char
Slide 19: UK Corporate Bank Q324
UK Corporate Bank Q324 Barclays Q3 2024 Results October 2024 19 Targets 2026 18.8% £0.2bn RoTE High teens % RoTE Profit before tax Q323: 18.3% Q323: £0.2bn Deliver high-quality £0.4bn £0.2bn Income growth across broad Income Costs Q323: £0.4bn Q323: £0.2bn sources 50% £13m Cost: income ratio High 40
Slide 20: UK Corporate Bank delivered Q324 RoTE of 18.8%
UK Corporate Bank delivered Q324 RoTE of 18.8% Barclays Q3 2024 Results October 2024 20 RoTE (%) Income by product (£m) YoY Income by type (£m) YoY 433 440 443 445 +1% 433 440 443 445 +1% Corporate 57 67 23.4 56 69 -3% +0% lending Non-NII 124 136 147 136 RoTE pre £32m net 3.2 impairment release: Tra
Slide 21: Private Bank & Wealth Management Q324
Private Bank & Wealth Management Q324 Barclays Q3 2024 Results October 2024 21 Targets 2026 29.0% £0.1bn RoTE Profit before tax RoTE >25% Q323: 41.2% Q323: £0.1bn £0.3bn £0.2bn Deliver high-quality Income Costs Income growth across broad Q323: £0.3bn Q323: £0.2bn sources 68% £7.3bn Cost: income rati
Slide 22: Private Bank & Wealth Management delivered Q324 RoTE of 29.0%
Private Bank & Wealth Management delivered Q324 RoTE of 29.0% Barclays Q3 2024 Results October 2024 22 RoTE (%) Income by type (£m) YoY Costs (£m) 337 320 326 -3% 269 118 133 137 +16% Non-NII 72 YoY 214 219 221 NII 197 219 -14% 135 +3% 187 189 Q322 Q323 Q224 Q324 Q322 Q323 Q224 Q324 CIR 50% 63% 68%
Slide 23: Investment Bank Q324
Investment Bank Q324 Barclays Q3 2024 Results October 2024 23 Targets 2026 8.8% £0.9bn RoTE In line with Group RoTE Profit before tax Q323: 8.0% Q323: £0.9bn £2.9bn £1.9bn Income High single digit CAGR Income Costs Q323: £2.7bn Q323: £1.8bn 67% £43m Cost: income ratio High 50s % Cost: income ratio I
Slide 24: Investment Bank delivered Q324 RoTE of 8.8%
Investment Bank delivered Q324 RoTE of 8.8% Barclays Q3 2024 Results October 2024 24 RoTE (%) Income by business (£m)1 Costs (£m)1 3,019 YoY YoY 2,911 2,851 +6% 2,686 Banking fees & 533 679 375 594 +58% underwriting 1,082 1,051 1,119 +3% Intermediation 1,471 2 1,8743 1,834 1,903 1,916 +4% Financing
Slide 25: Income up 6% YoY; strong performance in Advisory and DCM
Income up 6% YoY; strong performance in Advisory and DCM Barclays Q3 2024 Results October 2024 25 Global Markets Investment Banking Global Markets income (£m) Banking fees and underwriting (£m) International Corporate Bank +58% YoY income (£m) +67% USD +3% YoY 679 -21% YoY 2,259 +7% USD 138 594 YoY
Slide 26: US Consumer Bank Q324
US Consumer Bank Q324 Barclays Q3 2024 Results October 2024 26 Targets 2026 10.9% £0.1bn RoTE In line with Group RoTE Profit before tax Q323: 0.4% Q323: £0.0bn $31.6bn £0.8bn End Net Receivables c.$40bn (c.£31bn) End net receivables Income Jun-24: $31.2bn Q323: £0.8bn 10.38% £0.4bn Net interest marg
Slide 27: US Consumer Bank delivered Q324 RoTE of 10.9%
US Consumer Bank delivered Q324 RoTE of 10.9% Barclays Q3 2024 Results October 2024 27 RoTE (%) Income by type (£m) YoY Costs (£m) 809 819 791 -2% 753 137 147 173 144 -2% YoY Non-NII 429 410 404 393 -3% 616 662 646 647 -2% NII Q322 Q323 Q224 Q324 Q322 Q323 Q224 Q324 NIM 10.81% 10.88% 10.43% 10.38% C
Slide 28: Inorganic activity to drive our strategy has had minimal capital impact
Inorganic activity to drive our strategy has had minimal capital impact Barclays Q3 2024 Results October 2024 28 Day 1 impacts P&L impact FY RoTE impact RWA impact CET1 ratio impact Expected completion Performing Italian mortgages Completed £(220)m c.(45)bps c.£(0.8)bn Broadly neutral portfolio Q224
Slide 29: CET1 ratio within the 13-14% target range at 13.8%
CET1 ratio within the 13-14% target range at 13.8% Barclays Q3 2024 Results October 2024 29 Q324 CET1 ratio movements 15bps (7bps) (8bps) 46bps (22bps) 13.8% 13.6% 13.4% Q224 H124 buyback Q224 rebased Attributable Dividend RWA Other Q324 profit accrual excl. FX incl. FX CET1 Capital 47.7 (0.75) 46.9
Slide 30: Guidance on regulatory driven RWA inflation
Guidance on regulatory driven RWA inflation Barclays Q3 2024 Results October 2024 30 Overall impact in line with prior guidance (lower end of 5-10% of Group RWAs)1 with a change in timing Basel 3.1 implementation: c.£8-15bn RWA 1st January 2026 • Work in progress on near-final rules Previously 1st J
Slide 31: RWAs decreased by £11bn QoQ
RWAs decreased by £11bn QoQ Barclays Q3 2024 Results October 2024 31 Risk weighted assets (£bn) 1.0 0.2 0.3 (9.1) (1.2) (2.2) c.£(5.6)bn due to FX 351.4 Payments RWAs were elevated in Q2 due to cash in transit as the quarter-end was over a weekend 341.9 340.4 Q323 Q224 Barclays UK UK Corporate Priva
Slide 32: Consistent capital and liquidity over time
Consistent capital and liquidity over time Barclays Q3 2024 Results October 2024 32 Historical performance 13.8% 13.8% 12.0% MDA1 hurdle CET1 ratio 13-14% target 2019 2020 2021 2022 2023 Q324 82% 74% Loan: deposit ratio Prudent LDR over time 2019 2020 2021 2022 2023 Q324 170% Average Liquidity 155%
Slide 33: TNAV growth +11 pence QoQ and +35 pence YoY
TNAV growth +11 pence QoQ and +35 pence YoY Barclays Q3 2024 Results October 2024 33 QoQ TNAV movements (pence per share) 11 2 (3) 9 (8) 331 335 340 340 351 350 350 351 351 1 Q423 Q124 Q224 Attributable profit Share buyback Dividends paid Cash flow hedge Other Q324 reserve YoY TNAV movements (pence
Slide 34: Group Q324 performance against financial targets
Group Q324 performance against financial targets Barclays Q3 2024 Results October 2024 34 £2.8bn 12.3% Group NII1,2 (2024 guidance: >£11.0bn1,2) Statutory RoTE (2024 target: >10%) £1.7bn 13.8% Barclays UK NII (2024 guidance: c.£6.5bn2) CET1 ratio (target: 13-14%) 61% 37bps Cost: income ratio (2024 g
Slide 35: Why Barclays
Why Barclays Barclays Q3 2024 Results October 2024 35 1 High returning UK retail and corporate franchises 2 Top-tier global Investment Bank with focus and scale, operating in core UK and US markets Multiple levers to allocate capital in a disciplined way to drive growth 3 within higher returning div
Slide 36: Appendix
Appendix
Slide 37: Head Office Q324
Head Office Q324 Barclays Q3 2024 Results October 2024 37 Income (£m) YoY 188 n.m. 134 113 (164) German 92 +15% Cards 71 80 91 Merchant 75 -16% acquiring 92 89 67 Other 21 n.m. (29) (56) (82) Inorganic (240) activity1 Q322 Q323 Q224 Q324 1 Inorganic activity refers to certain inorganic transactions
Slide 38: Structural hedge notional and income allocation to businesses
Structural hedge notional and income allocation to businesses Barclays Q3 2024 Results October 2024 38 Structural hedge notional (£bn) Illustrative structural hedge income allocation Product hedge Equity hedge 263 allocation allocation1 246 239 228 234 Barclays UK c.85% 21% UK Corporate Bank c.5% 6%
Slide 39: Macroeconomic variables
Macroeconomic variables Barclays Q3 2024 Results October 2024 39 Assumptions 2023 2024 2025 2026 UK GDP2 0.5% 0.2% 1.1% 1.6% UK unemployment3 4.3% 4.8% 4.7% 4.8% UK bank rate4 5.25% 4.00% 3.25% 3.25% Sterling 5-year swap rate5 3.36% 3.58% 3.49% 3.49% UK inflation6 7.4% 3.0% 1.9% 2.0% Plan US GDP2 2.
Slide 40: Well provisioned balance sheet
Well provisioned balance sheet Barclays Q3 2024 Results October 2024 40 Balance sheet provisions for ECL (£bn) Credit impairment charges (£m) 6.3 384 374 Barclays UK 5.7 8 Off-balance sheet 0.5 8 16 0.4 13 UK Corporate Bank 44 Private Bank & 43 Wealth Management Investment Bank On-balance sheet 5.7
Slide 41: Resilient mortgage book with customers proactively locking in rates
Resilient mortgage book with customers proactively locking in rates Barclays Q3 2024 Results October 2024 41 Mortgage portfolio Maturity profile • 52.6% average balance weighted LTV of mortgage stock • 5% of total balances maturing during Q4241 o 39.4% average valuation weighted LTV • Offering custo
Slide 42: Long-term prudent risk positioning in our credit card portfolios
Long-term prudent risk positioning in our credit card portfolios Barclays Q3 2024 Results October 2024 42 UK cards US cards • Balances c.28% lower vs. FY19 with strong and stable credit quality • Controlled portfolio growth with improved risk mix • Repayment rates remain elevated across the risk spe
Slide 43: Risk transfer transactions enhance Barclays' risk management capabilities
Risk transfer transactions enhance Barclays’ risk management capabilities Barclays Q3 2024 Results October 2024 43 Purpose H124: Barclays transfers c.£60bn1 risk via a variety of structures UK Corporate Bank and Investment Bank • The banking book has inherent credit Corporate risk, driving risk weig
Slide 44: Risk transfer activities focused on corporate loans and credit cards
Risk transfer activities focused on corporate loans and credit cards Barclays Q3 2024 Results October 2024 44 H124: Corporate loans H124: US credit cards • Colonnade programme established in 2016 • Initiated risk transfer in Q124 to help optimise • Deployed against exposure in the UK Corporate Bank
Slide 45: Diverse and stable franchise deposit base
Diverse and stable franchise deposit base Barclays Q3 2024 Results October 2024 45 QoQ movements Investment Bank BUK: Personal Banking £122bn, -8% 41% £183bn, flat QoQ i ns • International Corporate Bank1: £102bn, +4% ur • 72% insured ed • Treasury deposits7: £20bn, -41% • >80% of relationships 5+ y
Slide 46: Prudently managed LCR supported by a highly liquid balance sheet
Prudently managed LCR supported by a highly liquid balance sheet Barclays Q3 2024 Results October 2024 46 Average LCR1 Average NSFR2 72% of Liquidity Pool held in cash es3 72 i HTC % rit £23bn c u 139% 138% 138% 136% 136% 136% as ec 157% 159% 161% 163% 167% 170% 7% h tS FVOCI Deb £66bn 21% Q223 Q323
Slide 47: CET1 ratio with significant headroom to MDA
CET1 ratio with significant headroom to MDA Barclays Q3 2024 Results October 2024 47 CET1 minimum requirements at Q324 Leverage minimum requirements at Q324 MDA 12.0% CCyB 1.0% Reg Min 4.08% CCB 2.5% CCLB 0.30% G-SII 1.5% G-SII 0.53% 13.8% Pillar 2A 2.6% 4.9% BoE 4.6% minimum leverage 3.25% requirem
Slide 48: Operating with a prudent buffer to each tier of capital requirements
Operating with a prudent buffer to each tier of capital requirements Barclays Q3 2024 Results October 2024 48 AT1 and T2 needs managed on a total capital basis Balanced total capital structure As at Q324 • Operating with prudent buffers at each part of the capital stack to manage FX and RWA movement
Slide 49: We continue to advance our ESG agenda
We continue to advance our ESG agenda Barclays Q3 2024 Results October 2024 49 Barclays has been named as the Best Bank for ESG in the UK by Euromoney1 for the second year in a row Environment Social Governance • Policy: Updated Climate Change Statement in February 2024, with new financing restricti
Slide 50: Disclaimer
Disclaimer Barclays Q3 2024 Results October 2024 50 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 t