Barclays Plc · LSE:BARC
Barclays — KBW UK & European Financials Conference 2010
19 slides from Barclays's conference presentation, Sep 13, 2010
Slide 1: KBW UK & European Financials Conference
KBW UK & European Financials Conference Antony Jenkins, CEO Global Retail Banking 13 September 2010
Slide 2: H1 Highlights
H1 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 3: 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 4: 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 5: 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 6: Global Retail Banking (GRB) is an important part of Barclays
Global Retail Banking (GRB) is an important part of Barclays Barclays 2009 PBT GRB Composition 2009 PBT by business £5.3bn Barclays GRB Africa £1.8bn Western Europe (34%) Retail Banking 6% UK Retail 15% Banking 39% £1.8bn 40% Barclaycard 6
Slide 7: GRB is a customer defined and geographically focused business
GRB is a customer defined and geographically focused business Customer Defined GRB • Mass consumer • Global banking and payment provider • Mass affluent • 37m customers • Business clients • 3.5k distribution points • 66k colleagues UK Retail Banking Geographically Focused Barclaycard • UK • US Weste
Slide 8: UK Retail Banking performance
UK Retail Banking performance 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(1) 504 313 61 Return on average equity 11% 8% Return on average tangible eq
Slide 9: Barclaycard performance
Barclaycard performance 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(1) 317 375 (15) Return on average equity 10% 15% Return on average tangible equity
Slide 10: Western Europe Retail Banking performance
Western Europe Retail Banking performance 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(1) 10 92 (89) Return on average equity 10% 5% Return on average tang
Slide 11: Barclays Africa performance
Barclays Africa performance 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(1) 70 65 8 Return on average equity 13% 2% Return on average tangible equity 14% 2% Retu
Slide 12: Summary: Global Retail Banking performance
Summary: Global Retail Banking performance 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(1) 901 845 7 (1) Includes other profit from share of post-tax re
Slide 13: GRB is building on strong foundations
GRB is building on strong foundations Well diversified Upgraded footprint Innovative products Leading edge technology Strong customer franchise 13
Slide 14: GRB objectives
GRB objectives Happy customers Strong profit growth Good returns 14
Slide 15: Lives Made Much Easier
Lives Made Much Easier THE GOAL THE VISION THE MEANS the • deeper impact with customers ‘go-to’ bank LIVES MADE • greater scale in all our markets in our chosen MUCH EASIER markets • higher performance 15
Slide 16: Lives Made Much Easier will be delivered through an integrated set of strategies
Lives Made Much Easier will be delivered through an integrated set of strategies LIVES MADE MUCH EASIER Barclaycard Western Barclays UKRB Europe Africa Deepen Mass Consumer Growth in Mass Affluent Opportunity with Business Clients Expansion in Payments Enabled by rigorous risk and cost management 16
Slide 17: GRB Returns
GRB Returns 2009 3 Year Target RoRWA 1.5% c.2.0% Return on Tangible Equity 17% c.20% Return on Equity 10% 13-15% New business hurdle: RoRWA =1.5%
Slide 18: These strategies will enable GRB to deliver on its financial goals
These strategies will enable GRB to deliver on its financial goals Profit growth Strong compound annual profit growth Improved loan to Liability growth exceeding asset growth deposit ratio Focus on existing markets and continue to Depth, not breadth diversify through products Generation of net Attra
Slide 19: KBW UK & European Financials Conference
KBW UK & European Financials Conference Antony Jenkins, CEO Global Retail Banking 13 September 2010
Barclays — KBW UK & European Financials Conference 2010 on 6ix