Slide 1: Barclays PLC - Chris Lucas, Group Finance Director
Barclays PLC Chris Lucas Group Finance Director 09 June 2011
Slide 2: Our strategy remains unchanged
Our strategy remains unchanged • Integrated universal banking model • Diversification by business, geography, client and funding • Relentless customer and client focus
Slide 3: Barclays of today versus 2007
Barclays of today versus 2007 Core Tier 1 Capital Ratio Adjusted Gross Leverage Group Liquidity Pool 11.0% £161bn 33x 2.3x 0.6x 20x 4.7% 8.5x £19bn
Slide 4: Supporting regulation
Supporting regulation 1. Will it lead to a safe and sound financial system where the tax payer is protected? 2. Will it help foster economic growth and job creation? 3. Will it result in a consistent approach internationally?
Slide 5: Our focus is on execution
Our focus is on execution • Capital • Returns • Income growth • Citizenship
Slide 6: Track record of capital generation
Track record of capital generation Core Tier 1 capital generation Net generated equity 10.8% 2.1% BGI transaction 1.9% £7.7bn Issuance Dividend 1.4% (0.2%) 5.6% 2008 2010
Slide 7: Returns: Internal focus on Return on Equity
Returns: Internal focus on Return on Equity Barclays businesses ranked by 2013f RoE Businesses with less than Businesses with greater than 11.5% RoE (CoE) 11.5% RoE (CoE) 11.5% 35% of Group Equity 65% of Group Equity
Slide 8: Cost programme
Cost programme • Plan to take at least £1bn off cost base by 2013 • £500m gross savings identified for 2011 - £250m net of restructuring charges • Spread across all parts of the Group
Slide 9: Income growth: clients and customers
Income growth: clients and customers Examples: • Equities and Advisory • Barclaycard • Egg • MBNA UK business cards • Technology • Growth markets e.g. Africa • Wealth: Gamma
Slide 10: Returns: Target RoE 13%, RoTE 15%
Returns: Target RoE 13%, RoTE 15% RoE RoTE
Slide 11: Income and Risk
Income and Risk Total income (£m) Total impairment (£m) Average DVaR (£m) 8,516 8,568 100 7,719 8,065 8,000 7,599 7,399 7,040 6,765 6,291 80 6,000 60 4,000 40 2,000 20 2,309 2,247 1,658 1,857 1,508 1,572 1,218 1,374 921 0 0 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111
Slide 12: Citizenship
Citizenship • Customer service • Jobs • Supporting economic growth • Investing in communities in which we work
Slide 13: Summary
Summary • Focus on delivering for shareholders • Appropriate balance between growth and risk to deliver return targets • Executing on promises: • Capital • Returns • Income growth • Citizenship