Barclays Plc · LSE:BARC
Barclays — Nomura Financial Services Conference 2010
27 slides from Barclays's conference presentation, Sep 3, 2010
Slide 1: Nomura Financial Services Conference
Nomura Financial Services Conference 3 September 2010
Slide 2: Chris Lucas, Group Finance Director
Chris Lucas Group Finance Director
Slide 3: Highlights
Highlights • Income resilience • Higher returns and higher profits • Impairment charges in line with guidance • Strong Capital Management • Stable leverage and strengthened liquidity • Gross new UK lending of £18bn
Slide 4: Group performance
Group performance 2010 2009 Change Half year ended – June (£m) (£m) % Profit before tax 3,947 2,745 44 Less: Own credit (gain) / charge (851) 893 Gains on acquisitions and disposals (133) (21) Gains on debt buy-backs – (1,192) Adjusted profit before tax 2,963 2,425 22
Slide 5: Financial summary
Financial summary 2010 2009 Change Half year ended – June (£m) (£m) % Income 16,581 15,318 8 Impairment charges (3,080) (4,556) (32) Net income 13,501 10,762 25 Operating expenses (9,720) (8,051) 21 Profit before tax 3,947 2,745 44 Cost : income ratio 59% 53% nm Cost : net income ratio 72% 75% nm
Slide 6: Financial summary cont'd
Financial summary cont’d Half year ended – June 2010 2009 Return on equity 9.8% 9.4% Return on tangible equity 12.0% 13.0% Return on risk weighted assets 1.5% 1.0% Earnings per share 20.9p 16.4p Dividend per share 2.0p 0.0p
Slide 7: Global Retail Banking
Global Retail Banking 2010 2009 Change Half year ended – June (£m) (£m) % UK Retail Banking 504 313 61 Barclaycard 317 375 (15) Western Europe Retail Banking 10 92 (89) Barclays Africa 70 65 8 GRB profit before tax 901 845 7
Slide 8: UK Retail Banking
UK Retail Banking 2010 2009 Change Half year ended – June (£m) (£m) % Total income 2,171 2,151 1 Impairment charges (447) (521) (14) Net income 1,724 1,630 6 Operating expenses (1,322) (1,319) – Profit before tax 504 313 61 Return on tangible equity 22% 16% Return on risk weighted assets 2.1% 1.4%
Slide 9: Barclaycard
Barclaycard 2010 2009 Change Half year ended – June (£m) (£m) % Total income 1,958 2,009 (3) Impairment charges (890) (915) (3) Net income 1,068 1,094 (2) Operating expenses (764) (724) 6 Profit before tax 317 375 (15) Return on tangible equity 14% 22% Return on risk weighted assets 1.4% 1.9%
Slide 10: Western Europe Retail Banking
Western Europe Retail Banking 2010 2009 Change Half year ended – June (£m) (£m) % Total income 602 682 (12) Impairment charges (133) (148) (10) Net income 469 534 (12) Operating expenses (495) (442) 12 Profit before tax 10 92 (89) Return on tangible equity 15% 7% Return on risk weighted assets 1.5%
Slide 11: Barclays Africa
Barclays Africa 2010 2009 Change Half year ended – June (£m) (£m) % Total income 403 365 10 Impairment charges (48) (63) (24) Net income 355 302 18 Operating expenses (285) (254) 12 Profit before tax 70 65 8 Return on tangible equity 14% 2% Return on risk weighted assets 1.5% 0.4%
Slide 12: Barclays Capital
Barclays Capital 2010 2009 Change PBT – Half year ended June (£m) (£m) % Barclays Capital 3,400 1,047 225 Own credit (851) 893 Barclays Capital excluding own credit 2,549 1,940 31
Slide 13: Barclays Capital income summary
Barclays Capital income summary H1 10 H2 09 H1 09 Change Half year ended – June (£m) (£m) (£m) (%) Top – line income 7,126 7,373 10,489 (32) Income credit market losses (65) (910) (3,507) Own credit 851 (927) (893) Total income 7,912 5,536 6,089 30 Credit market impairment (311) (499) (1,170) Impair
Slide 14: Barclays Capital income summary cont'd
Barclays Capital income summary cont’d (£m) 5,000 Top – line income Total income Net income 4,000 3,000 2,000 1,000 0 Q3 09 Q4 09 Q1 10 Q2 10
Slide 15: Barclays Capital analysis of top-line income
Barclays Capital analysis of top-line income (£m) 2,714 2,711 2,695 Q3 09 Q4 09 Q1 10 Q2 10 2,253 643 556 545 563 459 461 493 334 101 13 (46) 4 Fixed income, currency Investment Banking Equities and prime Principal investments and commodities services
Slide 16: Barclays Capital market risk: Positive distribution of daily trading revenue
Barclays Capital market risk: Positive distribution of daily trading revenue Business days 65 H2 09 H1 10 48 32 27 27 22 19 9 1 1 2 0 <-30 -30 to 0 0 to 30 30 to 60 60 to 90 >90 Daily revenue (£m)
Slide 17: Barclays Corporate
Barclays Corporate UK & Cont. New Half year ended – June Ireland Europe Markets 2010 2009 Change (£m) (£m) (£m) (£m) (£m) % Income 1,122 147 132 1,401 1,638 (14) Impairment (280) (586) (83) (949) (718) 32 Operating expenses (463) (85) (281) (829) (768) 8 Profit before tax 379 (524) (232) (377) 152 n
Slide 18: Barclays Corporate cont'd
Barclays Corporate cont’d UK & Cont. New Change Half year ended – June 2010 2009 Ireland Europe Markets % Loans and advances (£bn) 52.8 10.4 3.6 66.8 74.8 (11) Loans and advances 14.4 12.0 20 at fair value (£bn) Customer accounts (£bn) 61.6 4.4 2.4 68.4 57.8 18 Loan to deposit ratio 119% 150% nm Ret
Slide 19: Barclays Wealth
Barclays Wealth 2010 2009 Change Half year ended – June (£m) (£m) % Total income 757 623 22 Impairment charges (27) (21) 29 Net income 730 602 21 Operating expenses (635) (528) 20 Profit before tax 95 75 27 Return on tangible equity 16% 7% nm Return on risk weighted assets 1.4% 1.1% nm
Slide 20: Absa
Absa 2010 2009 Change Half year ended – June (£m) (£m) % Total income 1,379 1,210 14 Impairment charges (282) (295) (4) Net income 1,097 915 20 Operating expenses (784) (657) 19 Profit before tax 318 259 23 Return on risk weighted assets 1.9% 1.9% nm
Slide 21: Impairment summary: 32% reduction from H1 09
Impairment summary: 32% reduction from H1 09 BarCap CME 4,556 (859) BarCorp BarCap Intl Loans 365 (706) BarCorp UK / Ireland (135) UKRB B’Card Other (74) (25) (42) 3,080 H1 09 H1 10 • Rapid wholesale improvement • Significant BarCap reduction • Retail improvement • BarCorp Spain increase
Slide 22: Operating expenses
Operating expenses Cost bridge (£m) FX impact Other Regulatory 186 29 9,720 296 Performance 496 Investment 662 8,051 H1 09 H1 10
Slide 23: Capital management
Capital management Core Tier 1 Bridge Attributable profit less BlackRock own credit impact Regulatory Exercise of 0.5% (0.5%) RWA Warrants movements Other net 0.3% (0.4%) movement 10.0% 0.1% 10.0% H1 09 H1 10
Slide 24: Adjusted gross leverage
Adjusted gross leverage £bn 30 Jun 10 31 Dec 09 Total assets 1,587 1,379 Derivative gross-up (461) (374) AUM on balance sheet (2) (2) Settlement balances and cash collateral (53) (26) Goodwill and intangible assets (9) (9) Adjusted tangible assets 1,063 968 Tier 1 capital 52.0 49.6 Adjusted gross le
Slide 25: Funding position
Funding position • Loan to deposit ratio improved from 130% to 124% • Strong name recognition evidenced in credit spreads versus peers • Wholesale term debt maturing in 2010 of £15bn, fully refinanced in the first half • Wholesale term contractual maturities of £22bn in 2011 and £18bn in 2012
Slide 26: Strategic priorities
Strategic priorities • Diversify business and geographic footprint • Continued Equity and M&A build out at Barclays Capital • Execution of Gamma plan in Barclays Wealth • Develop international arm of Barclays Corporate • Deliver against GRB goals: • Strong profit growth; • Improved loan-to-deposit r
Slide 27: Summary
Summary • Strong customer relationships • Higher returns and higher profits • Strong levels of capital and liquidity • Well positioned in current operating environment