Barclays Plc · LSE:BARC
Barclays — Goldman Sachs European Financials Conference 2016
18 slides from Barclays's conference presentation, Jun 9, 2016
Slide 1: Barclays PLC
Barclays PLC Goldman Sachs European Financials Conference Tushar Morzaria, Group Finance Director 9 June 2016
Slide 2: Simplifying Barclays to improve Group returns
Simplifying Barclays to improve Group returns 1 Generating double digit RoTE in the Core – 10.7%1 in Q116 2 Accelerating rundown of Non-Core for closure in 2017 and progressing selldown of Barclays Africa Group Limited 3 Balancing capital accretion with improvement in RoTE 4 Allocating capital to ac
Slide 3: Transatlantic Consumer, Corporate & Investment Bank
Transatlantic Consumer, Corporate & Investment Bank Barclays Corporate & Africa Barclays UK Non-Core International Banking UK consumer and business bank Diversified transatlantic differentiated by scale and wholesale and consumer bank digital innovation Personal Banking Aim to achieve Expect to clos
Slide 4: Core franchise already generating double digit RoTE
Core franchise already generating double digit RoTE Barclays Core Summary financials – Q1161 • Delivering double digit Core RoTE, on a 10.7% Income £5,392m £3.7bn higher average tangible equity base PBT £1,717m year on year Cost: income ratio 61% • Equity held against Africa Banking already Loan los
Slide 5: Barclays UK: Differentiated by scale and digital innovation
Barclays UK: Differentiated by scale and digital innovation Summary financials – Q116 Unique opportunity to grow through leveraging our scale and technology to maintain attractive returns Income £1,803m PBT £704m Credit cards: Align Barclaycard UK with personal banking Cost: income ratio 53% and tar
Slide 6: Corporate & Investment Bank: Repositioned for success
Corporate & Investment Bank: Repositioned for success • Robust franchise with strong businesses across Markets, Summary financials – Q116 Advisory and Underwriting, Debt and Trade Finance, Cash Management and Corporate Lending Income £2,596m - Anchored in the two financial centers of London PBT £701
Slide 7: Consumer, Cards & Payments: High-returning, growth business
Consumer, Cards & Payments: High-returning, growth business • Significant growth potential across both consumer cards Summary financials – Q116 and payments & merchant acquiring - 24% income growth in Q116 year on year Income £917m PBT £326m Cost: income ratio 46% • Building on successful growth in
Slide 8: Proven Non-Core rundown execution
Proven Non-Core rundown execution • Proven management track record of executing Non-Core rundown successfully while preserving capital - RWAs reduced by 54% since Dec-13, despite a one-off £8bn top-up in Q116 - RWA reduction of £3bn in Q116 in Derivatives - Reduction of c.£9bn in tangible equity all
Slide 9: Strong pipeline of announced business disposals
Strong pipeline of announced business disposals • Strong pipeline of Business disposals, reinforcing Non-Core RWA rundown and cost reduction momentum - Expect to complete announced Business disposals in 2016 - Announced exclusive discussions regarding the potential sale of France Retail Banking1 • C
Slide 10: Non-Core income and cost guidance
Non-Core income and cost guidance Income (£m) Income guidance Businesses £196m • Income from Non-Core top-up expected to be Derivatives £(36m) eroded by end-2016 as business sales complete Securities & loans £(402)m - of which ESHLA FV £(374)m • Guiding to negative income run-rate of just over 1,143
Slide 11: Strong CET1 ratio progression
Strong CET1 ratio progression Fully Loaded CET1 ratio1 220bps Organic capital accretion BAGL selldown and >100bps Non-Core disposals2 Conduct & litigation 11.4% 11.3% 10.3% 9.1% Dec-13 Dec-14 Dec-15 Mar-16 • CET1 ratio of 11.3% as at 31 March 2016, an improvement of 220bps since December 2013 despit
Slide 12: Confidence on capital trajectory allows flexibility to pursue RoTE accretive actions
Confidence on capital trajectory allows flexibility to pursue RoTE accretive actions Future CET1 ratio target Current expected capital requirements • Managing capital position for 100-150bps management buffer above future regulatory minimum levels (11.7% based on current expectations) Management buf
Slide 13: Capital allocation balanced and diversified across the Group
Capital allocation balanced and diversified across the Group Group RWAs (£bn) by division – Mar-16 Group RWAs (£bn) by product – Mar-16 £363bn £363bn 51 Non-Core: 14% Operational Risk2 401 Head Office: 11% Non-Core Includes Barclays UK: 19% Head Office1 Africa Banking RWAs 70 WEBB3 Mortgages Persona
Slide 14: Reallocation of equity toward higher returning products
Reallocation of equity toward higher returning products RWAs, excluding Op risk (£bn) Markets - Core IB International Cards & Payments1 Reduction in RWAs (%) Increase in RWAs (%) (13%) 12% Credit Dec-14 Mar-16 Equities Barclays UK unsecured lending2 Macro Increase in RWAs (%) 17% Dec-14 Mar-16 Incre
Slide 15: Continued focus on cost discipline and efficiency
Continued focus on cost discipline and efficiency Group cost progression and Core guidance (£bn) Total operating expenses, excluding conduct and litigation, and other notable items Group Core Non-Core Africa Banking treated as a discontinued <60% operation1 cost: income ratio in a reasonable 19.5 ti
Slide 16: Simplifying Barclays to improve Group returns
Simplifying Barclays to improve Group returns 1 Generating double digit RoTE in the Core – 10.7%1 in Q116 2 Accelerating rundown of Non-Core for closure in 2017 and progressing selldown of Barclays Africa Group Limited 3 Balancing capital accretion with improvement in RoTE 4 Allocating capital to ac
Slide 17: Barclays PLC
Barclays PLC Goldman Sachs European Financials Conference 9 June 2016
Slide 18: Disclaimer
Disclaimer Important Notice 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 buy any securities or financial instruments, or any advice or recommendation with re
Barclays — Goldman Sachs European Financials Conference 2016 on 6ix